Multiple Choice
Because of "mental accounting,"
A) people are better able to process price changes than changes in product sizes.
B) people tend to be less risk averse.
C) people pay too little on their monthly credit card bills.
D) people isolate purchases and sometimes make irrational decisions.
Correct Answer:

Verified
Correct Answer:
Verified
Q28: Behavioral economics observes that people generally do
Q29: The many quirky decisions that people often
Q30: Fatal automobile accidents occur much more frequently
Q31: High-end retailers spend a lot on architecture,
Q32: People's tendency to prefer the "default" option
Q34: Sellers' sense of fairness is always consistent
Q35: One major consequence of the overconfidence effect
Q36: What is the ultimatum game?
Q37: According to behavioral economics, the difficulty among
Q38: What are the two categories of cognitive