Functional Fixedness Occurs When We

question 208

Multiple Choice

Functional fixedness occurs when we:

• A)tend to perceive the functions of objects as fixed or unchanging.
• B)persist in applying a large set of solutions to a wide range of problems.
• C)discover a "prime solution" that applies to several analogous problems.
• D)fix a problem by finding the correct solution.

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Definitions:

Economic Contraction

A decline in national output as measured by GDP, often marked by a decrease in spending, investment, and general economic activity.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given overall price level in a given time period.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and in a given period.

Real Exchange Rate

Measures the value of goods in one country compared to those in another, adjusting for price level differences.