A Cognitive Structure That Allows for Categorization and Associations and in Turn

question 20

Multiple Choice

A cognitive structure that allows for categorization and associations and in turn guides an individual's perceptions is a _____.

• A)bias
• B)heuristic
• C)attitude
• D)schema

---

Definitions:

Aggregate Demand

The amassed demand for all types of goods and services in an economic domain, set at a uniform price level across a certain time range.

Inventories

The goods and materials that a business holds with the purpose of resale or production in the future.

Wealth Effect

A behavioral economic theory suggesting that consumers spend more as the value of their assets rises, particularly visible in the increase in spending following a rise in home values or stock market portfolios.

Interest-Rate Effect

A theory suggesting that a change in interest rates will affect the level of spending on consumer goods and services due to the changes in borrowing costs.