A person cutting up her credit cards in an effort to curb her spending is an example of:
A. status quo bias.
B. a commitment device.
C. the endowment effect.
D. loss aversion.
B. a commitment device.
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An outside lag is
A) a policy aimed at increasing GDP. B) a policy aimed at reducing GDP. C) a lag in implementing policy. D) the period of time it takes for policies to work.
When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should:
A) continue to produce the level of output at which marginal revenue equals marginal cost. B) increase output to minimize its losses. C) reduce output to the level at which price equals average variable cost to minimize its losses. D) shutdown to minimize its losses.
If a market is informationally efficient, the current price of a corporation's common stock shares is the best predictor of its future performance because it incorporates all of the information currently known about its prospects
Indicate whether the statement is true or false
Which of the following variables do not change autonomous consumption?
a. Demographics b. Taxation c. Expectation d. Wealth e. Disposable income