If the Price of a Good or Service Rises,households Have

question 8

Multiple Choice

If the price of a good or service rises,households have to choose whether to buy less of that good or service or spend less on other goods and services.Studies have shown that when the price of health care rises,

• A) people cut back on their spending of medical services.
• B) people continue to consume the same amount of medical services and reduce spending on other goods and services, because medical services are viewed as a necessity.
• C) people consume more medical services because these services are viewed as being more valuable, and they significantly reduce spending on other goods and services.
• D) there is no correlation between the rising prices of medical services and the quantity of these services consumed.

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Definitions:

Self-Concept Clarity

The degree to which one's beliefs about oneself are clearly and confidently defined, internally consistent, and stable.

Self-Concept Clarity

The extent to which an individual's beliefs about themselves are clearly and confidently defined, internally consistent, and stable.

Agoraphobia

The fear of places or situations that might cause panic, helplessness, or embarrassment, often leading to avoidance behaviors.

Exposure Method

A technique used in therapy or research to gradually introduce individuals to a feared stimulus to reduce anxiety.