Social Theories Are Useful and Practical Because They

question 29

Multiple Choice

Social theories are useful and practical because they

• A)justify our personal biases and enable us to put those biases into action.
• B)prevent us from making decisions that could get us into trouble.
• C)enable us to make sense out of life and learn from our experiences.
• D)often impress other people who lack formal education and training.

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Definitions:

Cross Elasticity of Demand

The ratio of the percentage change in quantity demanded of one good to the percentage change in the price of some other good. A positive coefficient indicates the two products are substitute goods; a negative coefficient indicates they are complementary goods.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, as they are typically replaced with more expensive alternatives.

Substitute Goods

Products or services that can replace each other in use or consumption, leading to a choice between them based on price, preference, or other factors.

Normal Goods

Goods for which demand increases as the income of the consumer increases, and falls when the consumer's income decreases.