We Are More Prone to Ingroup Biases When Our Group

question 12

Multiple Choice

We are more prone to ingroup biases when our group is _____ and _____ relative to the outgroup.

• A)large; high in status
• B)large; low in status
• C)small; high in status
• D)small; low in status

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero; it represents the expenditures that consumers must make even when they have no income.

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, reflecting behavioral responses to changes in income.

Disposable Income

The amount of money left for households to use on saving and spending after income taxes are covered.

Savings Rate

The proportion of disposable income that is saved rather than spent by individuals or households.