Most People Would Prefer to Drive a Luxury Car That

question 272

Multiple Choice

Most people would prefer to drive a luxury car that has all the options, but more people buy less expensive cars even though they could afford the luxury car because

• A)car buyers are irrational.
• B)the total utility of less expensive cars is greater than that of luxury cars.
• C)the marginal utility per dollar spent on the less expensive car is higher than that spent on luxury cars.
• D)luxury cars cost a lot more than non-luxury cars.

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Definitions:

Procedural Fairness

Fairness that occurs when the process used to determine work outcomes is seen as reasonable.

Distributive Fairness

The perceived fairness of outcomes distributed within an organization, including resources, rewards, and responsibilities.

Social Loafing

A phenomenon where individuals exert less effort when working in a group than when working alone.

Collectivism

A cultural value that prioritizes group goals over individual goals and fosters strong ties among group members.