Use the Following to Answer Questions

question 206

Multiple Choice

Use the following to answer questions :
Scenario: Gizmovia
The Republic of Gizmovia wants to maintain the exchange rate of its currency, the gizmo, at $0.50, but the current exchange rate for the gizmo is $0.40.
-(Scenario: Gizmovia) Look at the scenario Gizmovia. At the target rate of $0.50:

• A)the quantity demanded of gizmos equals the quantity supplied.
• B)there is a surplus of gizmos.
• C)there is a shortage of gizmos.
• D)the quantity demanded of gizmos is greater than the quantity supplied.

---

Definitions:

Social Categorisation

The process of classifying people into groups based on shared characteristics, which can simplify social perception but also contribute to stereotyping.

Relative Homogeneity Effect

The tendency to perceive members of an out-group as more similar to each other than members of the in-group, often leading to stereotyping.

Ingroup Members

Individuals who belong to the same group or category as one perceives oneself, often feeling a sense of solidarity and common identity with them.

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often leading to distinction and bias against them.