A State Is Spending $40 Million on Highway Improvements

question 6

Multiple Choice

A state is spending $40 million on highway improvements.If the federal government promises to pay the state $0.25 for every $1 spent by the state on highway improvements,and if highway improvements are a normal good,the income effect induces the state to spend _________ on highway improvements; the substitution effect induces the state to spend _________ on highway improvements.

• A) less; less
• B) less; more
• C) no more or less (there is no income effect); more
• D) more; more

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Definitions:

Insecure Attachment

A type of attachment style characterized by anxiety and uncertainty, often resulting from a caregiver's inconsistent attention and response to a child's needs.

Erikson's Second Psychosocial Stage

Autonomy versus shame and doubt, a stage that occurs from about 18 months to 3 years of age, where children learn to develop a sense of personal control and independence.

Unusual Event

An occurrence that is out of the ordinary and generally unexpected.

Thomas and Chess

Psychologists known for their research on temperament, categorizing individual behavioral responses into different types.