One major consequence of the framing effect is that:
A. People may spend more to insure themselves against rare events, but leave themselves uninsured against more common events
B. Someone could persist in pursuing a failed policy despite overwhelming evidence of the failure
C. Major business projects may create bottlenecks in the organization because they are not completed as scheduled
D. Decision-makers may make faulty decisions if they are lulled by the environment in which they are making their decisions
D. Decision-makers may make faulty decisions if they are lulled by the environment in which they are making their decisions
You might also like to view...
Along a linear consumption function,
A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income. B) the marginal propensity to consume rises with an increase in income. C) the average propensity to consume falls with an increase in income. D) both the average propensity to consume and the marginal propensity to consume rise with an increase in income.
The quantity of money demanded will decrease if the
A) nominal interest rate decreases. B) price level rises. C) real interest rate decreases. D) inflation rate decreases. E) nominal interest rate increases.