In a Series of Studies by Solomon Asch (1951, 1956)

question 49

Multiple Choice

In a series of studies by Solomon Asch (1951, 1956) , when participants judged the lengths of lines alone rather than in a group of confederates, their judgments were accurate about 99 percent of the time. Still, when other participants made judgments in a group of people who gave the wrong answers, they reported incorrect judgments. These findings suggest that __________.

• A) experts exert informational social influence in ambiguous situations
• B) normative social influence was at work
• C) informational social influence happens, even in unambiguous situations
• D) people will distort reality to avoid punishment or social censure

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Definitions:

Dividend Revenue

Income earned from owning shares in a company that pays dividends out of its profits to shareholders.

Investment Carrying Amount

The value at which an investment is recognized in the balance sheet after deducting any impairment or amortization.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Management Fee

A charge levied by an investment manager for managing an investment fund.