Paula saves every dollar that she earns working overtime for her retirement. This week, she has added $80 to her retirement account by working overtime. On her way home from work on Friday, Paula wins $80 in a radio contest and drives to an electronics retailer to buy an $80 computer game. Paula is displaying:
A) marketing vacillation.
B) brain oscillation.
C) mental accounting.
D) passerby fixation.

Question

Quizplus · Accepted Answer

Paula is displaying mental accounting by treating different sources of money differently. She saves money earned from overtime for retirement but spends unexpected winnings immediately, showing how people categorize and treat money differently based on its source.

Paula Saves Every Dollar That She Earns Working Overtime for Her