Fred just purchased an expensive new refrigerator and is considering purchasing the overpriced warranty. In making his decision on the warranty, Fred ignores better ways that his money could be spent, including paying off high-interest credit card debt. According to prospect theory, the process that leads Fred to ignore the debt and buy the overpriced warranty is
A) framing bias.
B) anchoring.
C) mental accounting.
D) confirmation bias.
Answer: B) anchoring.
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Given that food production is crucial to an economy, why shouldn't governments subsidize farmers' water use?
What will be an ideal response?
After the American Revolution concluded, what did the English do?
(a) They withdrew all investments in colonial America. (b) They continued investing in colonial America. (c) They discouraged individuals in other countries from investing in colonial America. (d) They did none of the above.
A monopolistically competitive market can also be:
A. perfectly competitive market. B. a monopoly. C. an oligopoly. D. All of the above.
Personal income represents what households actually receive as income, while personal disposable income nets out of personal income taxes paid to federal, state, and local governments
Indicate whether the statement is true or false