Elijah has set up a budget for each month. He allows himself $300 for food, $200 for bills, $100 for transportation, and $200 for entertainment. By the third week of the month, Elijah has spent nearly his entire $300 food budget, but has $100 remaining in his entertainment budget. Elijah spends his last few food dollars on rice and beans, the only thing he can afford with his remaining food money, even though he hates rice and beans. Elijah's behavior is an example of:

Question

Quizplus · Accepted Answer

Elijah's behavior exemplifies ignoring the fungibility of money, which means he is treating money allocated for different purposes as if it is not interchangeable, even though it is. He sticks to his budget categories strictly rather than reallocating funds from entertainment to food.

Elijah Has Set Up a Budget for Each Month