Paul Is an Analyst at an Investment Bank

question 41

Multiple Choice

Paul is an analyst at an investment bank.He notices that many of the senior executives at his office wear Rolex watches,so he decides to save up and buy a Rolex so that he will appear to more like those executives.This behavior is known as ________.

• A) status consumption
• B) affluent consumption
• C) downward comparison
• D) social stratification
• E) antisocial comparison

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Definitions:

Macroeconomics

The branch of economics that focuses on the behavior, performance, structure, and decision-making of an economy as a whole, rather than individual markets.

Large Aggregates

Broad categories or totals in economic data that combine several individual elements, such as national income, GDP, or total employment.

Economy as a Whole

A broad view of all the economic activities and transactions in a country or region, encompassing consumer, business, and government spending, investments, and trade balance.

Scarcity Problem

A situation where unlimited wants exceed the limited resources available to fulfill those wants, necessitating prioritization and decision-making.