What Is One Way to Avoid Money Illusion

question 57

Essay

What is one way to avoid money illusion?

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Definitions:

Consensus

A general agreement among a group of people or in the scholarly literature on a particular issue or topic.

Covariation Principle

A concept in social psychology that explains how we attribute behavior to consistent internal or external factors over time.

Discounting Principle

The tendency to reduce the importance of any potential cause of another’s behavior to the extent that other potential causes exist.

Internal Attribution

The process of assigning the cause of behavior to an individual's internal characteristics or disposition rather than to external factors.