The Tendency to Do What Others Are Doing Simply Because

question 160

Multiple Choice

The tendency to do what others are doing simply because they are doing it is:

• A)persuasion.
• B)obedience.
• C)conformity.
• D)the actor-observer effect.

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Definitions:

Leakages-Injections Approach

An economic understanding and analysis of how savings, taxes, and imports (leakages) offset government spending, investments, and exports (injections) in the circular flow of income.

Value Added

The increase in worth of a product or service as a result of a particular process, often characterized by the difference between the price of the finished product and the cost of the inputs involved in making it.

Raw Materials

Basic materials extracted from natural resources or produced through agriculture, which are used in the production of goods and services.

Injection

Any spending other than by households or any income other than from resource earnings; includes investment, government purchases, exports, and transfer payments.