Myopic behavior occurs when
A)actions improve budgetary performance in the short-run but are harmful in the long run.
B)there is uncertainty.
C)there is focus on immediate costs.
D)actions improve budgetary performance in the distant time horizon.

Question

Quizplus · Accepted Answer

Myopic behavior is characterized by a narrow focus on short-term gains or immediate costs, often at the expense of long-term performance or sustainability. Therefore, choice A is the best answer as it describes actions that improve budgetary performance in the short-run but are harmful in the long run. Choices B and D do not accurately capture the concept of myopic behavior, while choice C is partially correct but does not fully encompass the breadth of this phenomenon.

Myopic Behavior Occurs When