If social motives for both consumption and positional goods are important, …

If social motives for both consumption and positional goods are important, …

a. “More is better” applies at the individual level but not the societal level.

b. “More is better” applies at the societal level but not the individual level.

c. An increase in my neighbours’ consumption increases my utility.

d. An increase in my neighbours’ consumption has no effect on my utility.

e. It still cannot explain the success of the Kardashians.

Expert Solution

The answer is (a)

If social motives for both consumption and positional goods are important, an increase in consumption (more) at the societal level is not necessarily better as the value from the positional good - a good that gives utility due to the exclusive use (status symbol) will decrease as everyone has it. Thus, the more is better may not generally at the societal level although it always holds at the individual level

All other options are incorrect as they do not convey the correct representation of the statement,

Rahul Sunny answered 2 years ago

How are social relationships in production similar to social relationships in consumption and how are they...

How are social relationships in production similar to social relationships in consumption and how are they different?

Inter-temporal Investment/Consumption a. Summarize Fisher’s separation theorem. b. Why is this theorem important to both investors...

Inter-temporal Investment/Consumption a. Summarize Fisher’s separation theorem. b. Why is this theorem important to both investors and corporations? c. Why is the existence of a capital market important to the theorem? Illustrate this graphically in the two-period framework and show/explain how consumers will maximize utility. d. What are some of the assumptions that cause the theorem to hold?

Buying Motives refer to the most important facts from the customer’s perspective in making a purchase...

Buying Motives refer to the most important facts from the customer’s perspective in making a purchase decision. Buying motives motivate the buyer to make a purchase, and they may be rational or emotional or a combination of both. Rational Motives include economic issues such as quality, cost, service capabilities, and the strategic priorities of the prospect's company. Emotional Motives include fear, status, and ego-related feelings. Benefits, on the other hand, describe added value for the customer—the favorable outcome derived from...

2. A researcher is examining the influence of social rejection on social media consumption. The researcher...

2. A researcher is examining the influence of social rejection on social media consumption. The researcher hypothesizes that people will spend more time on social media if they have been rejected (vs not rejected), consuming more social media to console themselves. User data from Instagram suggests the population of users spends an average μ = 48 minutes a day browsing Instagram with a standard deviation of σ = 20 minutes. Using survey data the researcher identified a sample of 25...

Most theories of motivation distinguish between biological motives (e.g., for food, water, sex, warmth) and social...

Most theories of motivation distinguish between biological motives (e.g., for food, water, sex, warmth) and social motives (e.g., for achievement , autonomy, affiliation). Biological needs are generally essential for the survival of the group or individual. Social motives are acquired as a result of learning. While there are relatively few biological needs, people theoretically may acquire an unlimited number of social needs. Although this statement is basically true, we know that the biological motives for food and sex are greatly...

discuss What Social Logic of Consumption is by Jean Baudrillard's book

Identify and describe three social characteristics associated with alcohol consumption.

Charlie likes two goods, pears and kiwis, and consumes no other goods. We write his consumption...

Charlie likes two goods, pears and kiwis, and consumes no other goods. We write his consumption bundle as (pears,kiwis), so that pears are the x variable and kiwis the y variable. Last month, Charlieconsumed 20 pears and 5 kiwis. The indifference curve through this bundle is described by y=100/x.Furthermore, you are told that the set of bundles for which he is indifferent between them and a newbundle at(10,15)is the set of bundles with y=150/x. (a) Plot the two indifference curves....

Within the framework of the single period investment-consumption model, explain the optimal consumption/investment decision both with...

Within the framework of the single period investment-consumption model, explain the optimal consumption/investment decision both with and without capital markets.

Why is social responsibility important to a business?

Question