Sally lives in a relatively well-off neighborhood. Most of her friends live in smaller homes in poorer neighborhoods, so Sally thinks that she is wealthy. When Sally compares her home with those of her friends, she is engaging in ____.

A) upward social comparison
B) downward social comparison
C) internal attribution
D) external attribution

Downward social comparison occurs when individuals compare themselves to others who are less fortunate or in a worse position, which can make them feel better about their own situation. In this case, Sally is comparing her relatively larger and presumably nicer home to the smaller homes in poorer neighborhoods where her friends live, which is an example of downward social comparison.