Ted Was Shopping for a New Automobile

question 26

Essay

Ted was shopping for a new automobile. He found one that met his needs and agreed to purchase it for $23,000. He had shopped around and concluded that he could not get a better price from another dealer. After he had paid for the automobile, the dealer called to notify Ted that he was entitled to a manufacturer's rebate of $1,500. The next week he received a $1,500 check from the manufacturer. How much should Ted include in gross income?

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Definitions:

Hierarchy Of Needs

A psychological motivational theory that describes human needs as a five-level hierarchy represented in the shape of a pyramid.

Self-Determination Theory

Argues that three needs—autonomy, competence, and relatedness—can explain much of human behavior.

Power Motives

The underlying psychological desires that drive individuals to seek control, influence, or authority over others.

Henry Murray

An American psychologist and one of the pioneers of personality psychology known for developing need theory and the Thematic Apperception Test (TAT).