Amanda is from Vermont and visiting California for the first time. At home, Amanda always goes jogging early in the morning because it's hottest in the early afternoon. Not knowing what to expect of the weather in California, she decides to go jogging in the early morning during her visit. This decision is an example of:
A. a heuristic.
B. positive framing.
C. loss aversion.
D. status quo bias.
Answer: A
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The Emission Trading Scheme of the European Union
A) created a market for pollutants. B) sets a cap on the amount of pollutants in each country. C) allowed firms to benefit from emitting pollutants. D) sets the amount of per-unit tax on each pollutant.
In the above figure, the monopolist's profit-maximizing price is
A. A. B. B. C. C. D. D.
If the legal minimum wage is set above the equilibrium wage rate
A. employment will tend to be lower than it otherwise would have been. B. employment will tend to be higher than it otherwise would have been. C. the level of employment will not be affected. D. there is no way to determine how the level of employment would be affected.
One way insurance companies deal with the problem of adverse selection is by:
A. screening applicants. B. charging the same price to everyone. C. monitoring policyholders after they have purchased insurance. D. spreading the risk in the same geographic area.