Father Says, "Earn a B-Average on Your Next Report Card

question 130

Multiple Choice

Father says, "Earn a B-average on your next report card and I'll help you buy a car." An economist would say that this parent is providing his child a(n)

• A) study disincentive.
• B) reason to slack off and not worry about her grades.
• C) bribe.
• D) incentive.

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Definitions:

Cognitive Dissonance

A psychological state of having inconsistent thoughts, beliefs, or attitudes, especially relating to behavioral decisions and attitude changes.

Sense of Consistency

The drive or need for individuals to ensure their beliefs, attitudes, and behaviors are coherent and aligned to avoid cognitive dissonance.

Psychological Price

Pricing strategy that leverages consumer psychology, often using pricing just below a whole number (e.g., $1.99) to increase appeal.

Low Involvement

A type of consumer behavior characterized by minimal effort and consideration during the purchase process, typically associated with routine, inexpensive, and low-risk products.