Suppose That Consumers Choose to Smoke Less and Chew Gum

question 459

Multiple Choice

Suppose that consumers choose to smoke less and chew gum more. Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more. This is an example of

• A)structural unemployment created by efficiency wages.
• B)structural unemployment created by sectoral shifts.
• C)frictional unemployment created by efficiency wages.
• D)frictional unemployment created by sectoral shifts.

Understand the impact of diverse opinions and independent thinking on group effectiveness ("wisdom of crowds").

Recognize behavioral contagion in groups, exemplified by the "bad apple" effect.

Comprehend how group decisions can suffer from limited information and lack of optimal leadership.

Identify the psychological dynamics involved in conforming to group norms or decisions under pressure.

---

Definitions:

Customer

An individual or organization that purchases goods or services from a business, often considered crucial to a company's success.

Message

Information conveyed in the sales presentation.

Evaluative Listening

Listening with the purpose of analyzing and assessing the message being communicated, often in decision-making contexts.

Active Listening

The practice of fully concentrating, understanding, responding, and remembering what is being said in a conversation.