Just After a Cyclical Trough,given the Excess Capacity in the Economy,there

question 22

Multiple Choice

Just after a cyclical trough,given the excess capacity in the economy,there should be an unusually ________ rate of closing the gap between desired and actual capital stocks,making net investment respond relatively ________ to rising sales.

• A)high,strongly
• B)high,weakly
• C)low,strongly
• D)low,weakly

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Definitions:

Social Comparison Theory

This theory posits that individuals determine their own social and personal worth based on how they stack up against others.

Self-esteem

The subjective evaluation of one's own worth or value.

Self-perception

A theory that people develop attitudes and opinions by observing their own behavior and concluding what attitudes must have caused them.

Upward Social Comparison

The process of comparing oneself with others who are perceived to be better off or superior in some way.