As Part of Recent Cutbacks,Paul Just Accepted a 10% Cut

question 103

Multiple Choice

As part of recent cutbacks,Paul just accepted a 10% cut in pay.Now he brews coffee at home instead of stopping at Starbucks every day.Based on this behavior,we can say:

• A)home-brewed coffee is a normal good,and Starbucks coffee is an inferior good for Paul.
• B)home-brewed coffee and Starbucks coffee are substitute goods for Paul.
• C)home-brewed coffee will become a normal good for Paul over time.
• D)We cannot make any of these assumptions about Paul.

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Definitions:

Respect

A feeling of deep admiration for someone or something elicited by their abilities, qualities, or achievements.

External Reinforcements

Rewards or punishments from the external environment that influence and shape behavior.

Social-cognitive Theory

A theory of learning that emphasizes the importance of observing, modeling, and imitating the behaviors, attitudes, and emotional reactions of others.

Internal Forces

Psychological or emotional factors that influence an individual's behavior and decision-making process from within.