Sociologists examine financial collapses such as those of the 1930s. These often occurred because rumors of insolvency, when believed by enough depositors, resulted in real bank failures. What sociological concept describes this phenomenon?
A) expressions given off
B) the Thomas theorem
C) dramaturgy
D) the generalized other

Question

Quizplus · Accepted Answer

The Thomas theorem states that if people define situations as real, they are real in their consequences. In this case, if enough people believe rumors of a bank's insolvency, they may start withdrawing their deposits, which could ultimately lead to an actual bank failure.

Sociologists Examine Financial Collapses Such as Those of the 1930s