A stock market crash which causes stock prices to fall should cause
A) an increase in wealth. B) an increase in consumption spending.
C) no change in consumption spending. D) a decrease in consumption spending.
Question 2
According to two economists, George Ackerlof and William Dickens, how can cognitive dissonance affect workers' perceptions of their jobs?
A) Cognitive dissonance causes workers to perceive they are victims of discrimination when, in fact, they are not.
B) Cognitive dissonance might cause workers to underestimate the true risks of their jobs.
C) Cognitive dissonance makes workers believe that measures to improve their health and safety in the workplace are ineffective.
D) Cognitive dissonance causes a worker to believe his marginal revenue product is greater than it really is.