New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Consider the following statements aboutGoldilocks

    Effect:  1.    Recently Finance Ministry’s growth and inflation forecasts indicate a Goldilocks Effect on the economy by the second quarter of the next fiscal year.  2.    It is the premise that people are inclined to seek ‘just the right’ amount of something.   3.    The concept is derived from the children's story of Goldilocks and the Three Bears.  Which of the statements given above is/are correct?
    A 1 only Correct Answer Incorrect Answer
    B 1 and 2 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 1 and 3 both Correct Answer Incorrect Answer

    Solution

    Reserve Bank of India's projections for growth and inflation suggest a Goldilocks Effect on the economy in the second quarter of the upcoming fiscal year.  The Goldilocks Effect, or Goldilocks Principle, posits that individuals tend to seek an amount of something that is "just right" – not too extreme or too moderate but falling within an optimal or desirable range that suits their specific needs or preferences.   Derived from the children's story of Goldilocks and the Three Bears, the concept reflects the idea that, like Goldilocks, people prefer choices that are neither too hot nor too cold, too big nor too small, but just right.  The Goldilocks Effect finds application in various fields such as psychology, hard sciences, economics, marketing, and engineering, each with its unique interpretation of how the principle is employed.  One notable application is Goldilocks Pricing, a psychological pricing strategy that incorporates elements of product differentiation, comparative pricing, and bracketing.

    Practice Next

    Relevant for Exams: