What does Galbraith mean by “wants are increasingly created by the process by which they are
satisfied” mean? In other words, what is the Dependence Effect? It is very important that you put this
answer in your own words. If you are mainly repeating words from the reading, it will not be clear that you
understand what you are saying.
2. Describe Galbraith’s main point using a modern example, such as a $600 smart phone.
3. According to section II of the Galbraith reading (pages 153-155), where does an individual’s desire for
goods come from?
4. As described by Veblen, how does the institution of private property change the relationship between the
individual and the group?
5. Veblen coined the term “conspicuous consumption” in a later chapter of his book. Research this term
and explain what it means.
The Dependence Effect, by John Kenneth Galbraith
Pecuniary Emulation, by Thorstein Veblen
Number your answers.
2. All answers must be in complete sentences. For example, “Because of the Industrial Revolution” is
not an acceptable answer.
3. Begin your answer by restating the question. For example, if the question is “How is this reading
relevant to the study of modern business,” then your answer should begin with something like,
“The reading is relevant to modern business because…”
4. Most assignment questions can be answered in 2-3 concise sentences. Questions with multiple
parts, or questions that ask you to compare/contrast multiple ideas will need to be longer.
5. Answers must be based on facts and concepts from the readings. In limited cases it may be
acceptable to state your opinion, but only if that opinion is followed by explanations backed up by
the assigned reading. You will not receive credit for simply stating your opinion without evidence
Preferred language style Simple (Easy vocabulary, simple grammar constructions)