Pat Goes to the Local Electronics Store to Learn About

question 69

Multiple Choice

Pat goes to the local electronics store to learn about high-end audio equipment. The salesperson spends an hour talking with Pat and demonstrating equipment. Pat then leaves and orders an audio system on the Internet for $250 less than the price at the store. Pat's behavior:

• A)is illegal.
• B)is a form of statistical discrimination.
• C)illustrates the free-rider problem.
• D)illustrates the problem of adverse selection.

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Definitions:

River Flooding

Natural overflowing of a river due to excessive rain or melting snow, often leading to inundation of areas that are normally dry.

Mirror-Image Perceptions

A concept in conflict resolution where opposing sides view each other in the same negative way, each seeing itself as ethical and the other as evil.

Bystander Effect

The phenomenon where individuals are less likely to offer help to a victim when there are other people present.

Two-Factor Theory

A psychological theory proposing that human emotions are based on two factors: physiological arousal and a cognitive label of the arousal.