According to Cognitive Dissonance Theory

question 96

Multiple Choice

According to cognitive dissonance theory:

• A)there is usually an inconsistency between people's attitudes and their behavior
• B)people tend to seek information that disconfirms their established attitudes
• C)behavior that is inconsistent with existing attitudes may provoke attitude change
• D)large rewards create more dissonance than small rewards

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Definitions:

Externality

A consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices.

Property Rights

Legal rights to use, control, and benefit from a resource.

Free-Rider Problem

A situation where individuals consume a public good without contributing to its cost, leading to underprovision or overuse.

Coase Theorem

A principle that asserts that if property rights are clearly defined and transaction costs are low, private negotiations will lead to the efficient resolution of disputes regardless of initial distribution of rights.