Wally Is Less Likely to Get the Pleasure and Stimulation

question 16

Multiple Choice

Wally is less likely to get the pleasure and stimulation out of drinking when he is at home than when he has a couple of drinks at the bar. This could be because

• A)he has negative alcohol expectancies at home because of the way his parents modelled moderate drinking behaviour at home.
• B)situational factors influence the effects of alcohol.
• C)he will be with his friends at the bar and this will make it more relaxing and pleasurable.
• D)he is probably drinking to relieve stress at home while he is drinking for external, enjoyment reasons at the bar.

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Definitions:

Spending Multiplier

The ratio of a change in aggregate income to the initial change in spending that brought it about, illustrating the larger impact on income.

Government Purchases

Expenditures made by the public sector on goods and services, including infrastructure and public safety.

Net Taxes

The total amount of taxes collected by the government minus any transfer payments and subsidies.

GDP

Gross Domestic Product, a measure of the economic performance of a country, evaluating the total value of all goods and services produced over a specific time period.