The Patersons Bought a Home That Was Newly Constructed in 2007

question 259

Multiple Choice

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2009 for $205,000. Which of the following statements is correct regarding the sale of the house?

• A)The 2009 sale increased 2009 GDP by $205,000 and had no effect on 2007 GDP.
• B)The 2009 sale reduced 2009 GDP by $70,000 and had no effect on 2007 GDP.
• C)The 2009 sale increased 2009 GDP by $205,000; and caused 2007 GDP to be revised downward by $70,000.
• D)The 2009 sale affected neither 2007 GDP nor 2009 GDP.

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Definitions:

Social Loafing

Social Loafing is the phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or expectations.

Deindividuation

A psychological state where an individual loses self-awareness and sense of individuality, often leading to disinhibited and impulsive behavior, typically in group settings.

Foot-In-The-Door

A persuasion technique where a small request is made first to gain compliance, followed by a larger request, increasing the likelihood of agreement.