QUESTION 1

Scarcity has two behavioral effects. One is the focus dividend. What is the other

1. Tunneling
2. Anxiety
3. Increased fluid intelligence
4. Improved executive control

1 points

QUESTION 3

1. Why does the demand curve slope downwards?
2. In a recession, demand for goods declines over time
3. Profits motivate firms to produce more goods at lower prices
4. Increased inequality reduces demand by more of society
5. Consumers demand less of a good as the price increases

1 points

QUESTION 4

1. Michelle's costs for college are:

Tuition: $5,000

Books: $300

Fees: $200

1. When she goes to college, she must reduce her working hours, so her income is $2,000 less.

She will also have less time with her friends and family, which she values at $1,000.

What is her accounting cost for going to college? (Enter the amount without the "$")_________

What is her opportunity cost for going to college? (Enter the amount without the "$")___________

1 points

QUESTION 5

1. Manuela is considering starting a company. She estimates a 10% chance of earning $1,000,000; 40% chance of earning $100,000 and 50% chance of losing her $50,000 investment. What's the expected value of her business?(Enter your answer without the "$".) __________

1 points

QUESTION 6

1. This argument is sound:

If taxes are lowered, I will have more money to spend.

I have more money to spend.

Therefore, taxes must have been lowered.

1. True
2. False

1 points

QUESTION 7

From the list below, which is the best way to reduce the effects of scarcity

1. Build in slack in planning
2. Rely more on system 1 thinking
3. Tunnel on money
4. Increase the pain of paying

1 points

QUESTION 8

1. Lack of income causes Jake stress, which reduces his ability to plan, leading to borrowing, which causes interest costs that increases scarcity and stress... This is known as..

Scarcity trap

Debt cycle

Predatory lending

Marshmallow fallacy

1 points

QUESTION 9

What does prospect theory say about how we experience gains and losses?

1. We regard losses as roughly equally important as gains of comparable magnitude.
2. We regard gains as considerably more important than losses of comparable magnitude.
3. We have inconsistent attitudes(noise) with respect to gains and losses.
4. We regard losses as considerably more important than gains of comparable magnitude.

1 points

QUESTION 10

As a consumer, what is a good way to check that our spending decision is a wise one?

1. Calculate the Expected Value
2. Calculate the ROI
3. Calculate the Willingness to Pay
4. Calculate the Cost Per Wear/Use