The Wealth Effect Refers to the Fact That Wealthier Individuals

question 87

True/False

The wealth effect refers to the fact that wealthier individuals tend to spend more on foreign goods.

---

Definitions:

Numerosity

The cognitive ability to understand and recognize quantities or the number of objects in a set.

Reciprocity

The social norm that suggests people should return help, not harm, to those who have behaved kindly towards them.

Foot-In-The-Door Technique

A persuasion strategy that involves getting someone to agree to a small request in order to increase the likelihood of agreeing to a larger request later.

Door-In-The-Face Technique

A persuasion strategy where a large, unreasonable request is first made knowing it will be refused so that a smaller, more moderate request will be accepted.