Figure 10-19 -Refer to Figure 10-19. Note That the Lines Labeled "Demand

question 484

Multiple Choice

Figure 10-19
-Refer to Figure 10-19. Note that the lines labeled "Demand" and "Social Value"are parallel. Also, the slopes of the lines on the graph reflect the following facts: (1) Private value and social value decrease by $1.00 with each additional unit of the good that is consumed, and (2) private cost increases by $1.40 with each additional unit of the good that is produced. Thus, when the 74th unit of the good is produced and consumed, social well-being

• A)decreases by $2.40.
• B)decreases by $1.60.
• C)increases by $1.00.
• D)increases by $1.40.

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Definitions:

Stereotypes

Oversimplified generalized beliefs or expectations about the characteristics and behaviors of members of a group, often leading to prejudgment.

Behavioral Interpretation

The process of understanding actions and reactions through psychological principles.

Ultimate Attribution Error

The tendency to believe that bad actions by outgroup members occur because of their internal dispositions and good actions by them occur because of the situation, while believing the reverse for ingroup members.

Ingroup Bias

The tendency to favor members of one's own group over those in other groups, often leading to preferential treatment and positive evaluations of ingroup members.