Joshua is tired of school as well as his part-time job and decides on the spur of the moment to take a weekend trip to Cabo San Lucas.He pays for it with his credit card,rather than with money from his checking account.Which type of irrational behaviour does this BEST represent?

Question

Quizplus · Accepted Answer

This behavior represents mental accounting, which occurs when individuals treat money differently depending on where it comes from and how it is categorized. Joshua could have used money from his checking account but chose to use his credit card, which he may have mentally categorized as "free money" or not counting towards his available funds. This decision may be irrational as it could result in accumulating debt and paying high interest rates.

Joshua Is Tired of School as Well as His Part-Time