Brittany decides to save $50 from each paycheck so that she can go on a Spring Break trip with her college roommates. However, when she gets paid this week, she spends all of her money on new clothes. Which of the following insights into human behavior does Brittany exhibit?
a. People are overconfident.
b. People care about fairness.
c. People are reluctant to change their minds.
d. People are inconsistent over time.
d
You might also like to view...
Bobby faces two choices. The first is to receive $600 on the spot. The other choice is to receive $800 a year from now. The interest rate is 5% per year. What could a possible explanation for Bobby choosing to receive $600 on the spot?
A) Bobby finds that the present value of the $800 a year from now is less than $600. B) Bobby may have time-inconsistent preferences. C) Although Bobby chooses $600 on the spot, he is actually indifferent between the two options. D) None of the above is correct.
Give examples of two substitute goods and two complementary goods. In each case explain why the goods are substitutes or complements
Please provide the best answer for the statement.