mod 5

• When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
• The Wealth of Nations was written

  1776
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Consumers act rationally by


  Maximising their utility
• Producers act rationally by

  Selling goods/services in a way that maximises their profits
• Workers act rationally by


  Balancing welfare at work with consideration of both pay and benefits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• A firm increases advertising

  Demand curve shifts right
• Demand curve shifting right

  Increases the equilibrium price and quantity
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• General Adaptation Syndrome


  Physiological response to stress involving three stages: alarm, resistance, and exhaustion
• Immune System


  The body's defense system that protects against disease and infection
• Health Psychology


  The study of the psychological factors that influence health, illness, and health-related behaviors
• Cognitive Factors in Stress

  The role of thoughts, beliefs, and perceptions in the experience of stress
• Personality Factors in Stress


  The influence of individual personality traits on the experience of stress
• Social and Cultural Factors in Stress

  The role of social support and cultural norms in the experience of stress
• Homeopathy is an illusion of healing
• Coping


  Efforts to manage the demands created by stressful events
• Social Support


  The comfort, assistance, and information received from others
• Culture


  The beliefs, values, behaviors, and traditions of a particular group of people
• Religion


  A system of beliefs, values, and practices based on the sacred
• Mindfulness meditation can help cope with stress
• Conformity


  The act of matching attitudes, beliefs, and behaviors to group norms
• Group Behavior


  The attitudes and behaviors of individuals within the context of a group
• Compliance


  Changing one's behavior due to a direct request or demand
• Obedience


  Changing one's behavior in response to an authority figure's instructions or commands
• Cults can lead to the failure of critical thinking
• Social Cognition


  The mental processes involved in perceiving, attending to, remembering, thinking about, and making sense of the people in our social world
• Attitude

  A relatively enduring evaluation of an object or person
• Attitude Change


  The process of modifying one's attitudes
• Cognitive Dissonance


  The mental discomfort experienced when one's beliefs and behaviors are inconsistent
• Impression Formation


  The process of forming judgments and impressions of other people
• Attribution


  The process of inferring the causes of other people's behavior
• Prejudice


  A negative attitude or belief about a group and its members
• Discrimination


  Unfair or unequal treatment of people based on their membership in a particular group
• The "Brown Eyes, Blue Eyes" study demonstrated how prejudice can be created and overcome
• Interpersonal Attraction


  The factors that lead people to be attracted to and like one another
• Love


  A complex emotion involving intimacy, passion, and commitment