Joe walks into Best Buy prepared to spend no more than $500 cash on a new computer,but the price turns out to be $600.Joe is told if he finances it on a Best Buy credit card,it will cost $600,but he will get a $25 gift card free with the computer.Joe opts to open the credit card and puts the full $600 on the account.According to economic theory,Joe's decision is:
A) irrational.
B) rational.
C) budget-conscious.
D) optimal.
Correct Answer:
Verified
Q8: When people change their minds about what
Q9: Matt has $2000 saved for a trip
Q9: Economists make the general assumption that:
A)people are
Q10: A typical behavior that violates the assumption
Q11: Time inconsistency refers to a situation where:
A)
Q13: Stan complains to his roommate that he
Q14: One concept that behavioral economists use to
Q14: Behavioral economists recommend mechanisms that help people:
A)
Q15: An application of behavioral economics is:
A) price
Q16: An application of behavioral economics is:
A) time
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