Choose the statement that people are more likely to choose based on the framing of the choice.

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Choose the statement that people are more likely to choose based on the framing of the choice.
a. Stock investment:
i. Invest in a stock with low uncertainty of return.
ii. Invest in a stock with high certainty of return.
b. Car purchase:
i. Buy a car that costs $20,000, which is $5,000 cheaper than the next level for that maker.
ii. Buy a car that costs $20,000, which is $5,000 more expensive than the lower level for that maker.
c. Movie choice:
i. Go to the movie that 100 out of 150 people give a five-star rating.
ii. Go to the move that 50 out of 150 people give less than a five-star rating.
d. Choice of college class:
i. Take a class in which 50 percent of students get an A.
ii. Take a class in which 50 percent of students don’t get an A.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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