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Aria Is a College Student Living on a Strict Budget

Question 5

Multiple Choice

Aria is a college student living on a strict budget. She goes to the mall with friends and resolves to not spend any money but finds a scarf that she really likes. Pragmatically, she knows she cannot afford the scarf, but she still wants to buy it. This example shows ______.


A) the boundary between Aria's rational and irrational economic thought
B) the natural cognitive limits of Aria's ability to make a rational economic decision
C) how Aria makes predictable mistakes when weighing outcomes and probabilities
D) how Aria uses the standard economic model in practice

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