Imagine That You Are a Participant in the Experiment Conducted

question 23

Multiple Choice

Imagine that you are a participant in the experiment conducted by Schachter and Singer (1962) . You were injected with a vitamin compound called Suproxin and told that you might experience an increased heart rate, hand tremors, and sweaty palms. Further imagine that while completing a questionnaire, the person in the room with you begins to act angry, tears up the questionnaire, and storms from the room. You are likely to __________ because __________.

• A) ignore this situational cue; you know the source of your arousal
• B) become angry too; situational cues have helped you label your arousal
• C) remain calm; to become angry would cause cognitive dissonance
• D) ignore the source of your arousal; the situation was so powerful

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Definitions:

External Costs

Costs of economic activities that affect third parties outside the transaction, which are not reflected in market prices.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.

Negative Externality

Occurs when a decision by an individual or firm results in unwanted negative effects on another party not involved in the decision.

MSC (Marginal Social Cost)

The total cost to society of producing an additional unit of a good or service, including both private costs and any externalities.