In the Stanford Prison Study,male College Students Agreed to Participate

question 87

Multiple Choice

In the Stanford prison study,male college students agreed to participate in a two-week experiment to discover what would happen when they took on the roles of prisoners and guards.The researchers found that:

• A)within a short time the prisoners became distressed and panicky,developing emotional symptoms and physical ailments.
• B)about five percent of the guards became tyrannical,giving the prisoners electric shocks when they were slow in obeying.
• C)90 percent of the guards tried to be "tough but fair" and demanded that the tyrannical guards lighten up on the prisoners because it was only an experiment.
• D)the study was conducted in an unused wing of a real prison; therefore,the realistic atmosphere enhanced the role behavior of prisoners and guards.

Distinguish between different types of risks associated with bonds.

Understand the significance of price to earnings ratio in evaluating company stock.

Understand the concept of credit risk and how it affects bond interest rates.

Explain the role of financial markets in allocating resources and achieving market equilibrium.

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