Suppose an Economist Says That "Other Things Equal, the Lower

question 193

Multiple Choice

Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that

• A) the quantity of bananas purchased determines the price of bananas.
• B) all factors other than the price of bananas (for example, consumer tastes and incomes) are assumed to be constant.
• C) everyone will buy more bananas when the price falls.
• D) one cannot generalize about the relationship between the price of bananas and the quantity purchased.

---

Definitions:

Implicit Personality Theory

The assumptions or biases that people naturally make about the characteristics and traits of others based on limited observations.

Primacy

The principle that items or information presented first in a list or sequence are more likely to be remembered or given importance.

Recency Effect

The tendency for a perceiver to rely on recent cues or last impressions.

Performance Evaluation

The process of assessing an employee's job performance against predefined criteria to provide feedback, guide further development, and make decisions about promotions or rewards.