Conspicuous consumption is an effective signal of high ability if

Question

Quizplus · Accepted Answer

If the conspicuous consumer has a job that pays a commission or bonus, their ability can be signaled through their ability to consume conspicuously. This is because their ability to generate high earnings translates directly into their ability to consume luxuriously. On the other hand, if the conspicuous consumer has a job that pays a flat salary, their ability to consume conspicuously may not necessarily signal high ability, as they could be spending beyond their means and accumulating debt. Therefore, the best choice is C.

Conspicuous Consumption Is an Effective Signal of High Ability If