Joshua is tired of school as well as his part-time job and decides on the spur of the moment to take a weekend trip to Cabo San Lucas.He pays for it with his credit card,rather than with money from his checking account.Which type of irrational behavior does this BEST represent?

Question

Quizplus · Accepted Answer

Joshua is exhibiting mental accounting because he is treating the credit card as a separate account from his checking account, even though it will still require payment later on. He is not considering the long-term consequences of using credit card debt to pay for expenses in the short-term.

Joshua Is Tired of School as Well as His Part-Time