Social Identity Theory Indicates That

question 54

Multiple Choice

Social identity theory indicates that:

• A)we tend to believe our own actions are caused by motivation or ability rather than the situation.
• B)we define ourselves in terms of our membership in certain groups and our differences with people who belong to other groups.
• C)our emotions screen out large blocks of information that threaten our beliefs and values.
• D)we quickly form an opinion of people based on the first information we receive about them.
• E)our expectations about another person cause that person to act in a way that is consistent with those expectations.

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Definitions:

Market Price

This represents the price at which a commodity, security, or other financial instrument is traded on the open market and can be purchased or sold.

Common Stock

Signifies holding stakes in a corporation, which provides owners with the right to vote and a portion of the company's earnings via dividends.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or under-valued.