Part 2: Behavioral Economics For each of the following, identify the more appropriate behavioral economics concept to describe the situation: You age a bottle of wine for 20 years, increasing its value to $250. You would never buy a bottle of wine for $250, but you decide to drink it rather than sell it. [ Choose ] Every night, you set your alarm for 7 a.m., and every morning you hit the snooze [ Choose ] button at least four times. People are more likely to undergo a surgical procedure when told the survival rate [ Choose ] rather than the death rate. A website automatically checks the option "share activity with my friends on [ Choose ] Facebook" at sign up. You want to drop a class, but it is past the date to receive a tuition refund. You decide [ Choose ] to stay in the class. 95% of Americans say they support organ donation, but only 54% opt in to become [ Choose ] donors. You plan to study for an exam over the weekend, but end up meeting up with friends [Choose ] instead. You want to eat healthier, so you purposely get rid of all of your junk food and only buy [ Choose ] healthy foods while grocery shopping. When your free trial for Netflix expires, you decide not to cancel it even though you haven't watched it much lately. [ Choose ] You are on hold with customer service. Even though you'd prefer to hang up and call back at a less-busy time, you decide to stay on the line since you've already spent so [ Choose ] much time waiting. > > >
Part 2: Behavioral Economics For each of the following, identify the more appropriate behavioral economics concept to describe the situation: You age a bottle of wine for 20 years, increasing its value to $250. You would never buy a bottle of wine for $250, but you decide to drink it rather than sell it. [ Choose ] Every night, you set your alarm for 7 a.m., and every morning you hit the snooze [ Choose ] button at least four times. People are more likely to undergo a surgical procedure when told the survival rate [ Choose ] rather than the death rate. A website automatically checks the option "share activity with my friends on [ Choose ] Facebook" at sign up. You want to drop a class, but it is past the date to receive a tuition refund. You decide [ Choose ] to stay in the class. 95% of Americans say they support organ donation, but only 54% opt in to become [ Choose ] donors. You plan to study for an exam over the weekend, but end up meeting up with friends [Choose ] instead. You want to eat healthier, so you purposely get rid of all of your junk food and only buy [ Choose ] healthy foods while grocery shopping. When your free trial for Netflix expires, you decide not to cancel it even though you haven't watched it much lately. [ Choose ] You are on hold with customer service. Even though you'd prefer to hang up and call back at a less-busy time, you decide to stay on the line since you've already spent so [ Choose ] much time waiting. > > >
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Classify each identity with the situation that best describes it.
![Part 2: Behavioral Economics
For each of the following, identify the more appropriate behavioral economics concept to describe the situation:
You age a bottle of wine for 20 years, increasing its value to $250. You would never
buy a bottle of wine for $250, but you decide to drink it rather than sell it.
[ Choose ]
Every night, you set your alarm for 7 a.m., and every morning you hit the snooze
[ Choose ]
button at least four times.
People are more likely to undergo a surgical procedure when told the survival rate
[ Choose ]
rather than the death rate.
A website automatically checks the option "share activity with my friends on
Facebook" at sign up.
[ Choose ]
You want to drop a class, but it is past the date to receive a tuition refund. You decide
[ Choose ]
to stay in the class.
95% of Americans say they support organ donation, but only 54% opt in to become
[ Choose ]
donors.
You plan to study for an exam over the weekend, but end up meeting up with friends
[ Choose ]
instead.
You want to eat healthier, so you purposely get rid of all of your junk food and only buy
[ Choose ]
healthy foods while grocery shopping.
When your free trial for Netflix expires, you decide not to cancel it even though you
[ Choose ]
haven't watched it much lately.
You are on hold with customer service. Even though you'd prefer to hang up and call
[ Choose ]
back at a less-busy time, you decide to stay on the line since you've already spent so
much time waiting.
> >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc777eb6c-5f00-442c-a5ae-30c50b2299ca%2F29cd6377-85ac-4b28-b5e3-89f8dbb7d9db%2Fijmd64_processed.png&w=3840&q=75)
Transcribed Image Text:Part 2: Behavioral Economics
For each of the following, identify the more appropriate behavioral economics concept to describe the situation:
You age a bottle of wine for 20 years, increasing its value to $250. You would never
buy a bottle of wine for $250, but you decide to drink it rather than sell it.
[ Choose ]
Every night, you set your alarm for 7 a.m., and every morning you hit the snooze
[ Choose ]
button at least four times.
People are more likely to undergo a surgical procedure when told the survival rate
[ Choose ]
rather than the death rate.
A website automatically checks the option "share activity with my friends on
Facebook" at sign up.
[ Choose ]
You want to drop a class, but it is past the date to receive a tuition refund. You decide
[ Choose ]
to stay in the class.
95% of Americans say they support organ donation, but only 54% opt in to become
[ Choose ]
donors.
You plan to study for an exam over the weekend, but end up meeting up with friends
[ Choose ]
instead.
You want to eat healthier, so you purposely get rid of all of your junk food and only buy
[ Choose ]
healthy foods while grocery shopping.
When your free trial for Netflix expires, you decide not to cancel it even though you
[ Choose ]
haven't watched it much lately.
You are on hold with customer service. Even though you'd prefer to hang up and call
[ Choose ]
back at a less-busy time, you decide to stay on the line since you've already spent so
much time waiting.
> >
![[ Choose ]
Commitment device
Framing
Sunk cost fallacy
Status-quo bias
Default rules
Time inconsistency
[ Choose](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc777eb6c-5f00-442c-a5ae-30c50b2299ca%2F29cd6377-85ac-4b28-b5e3-89f8dbb7d9db%2Ffqscu3m_processed.png&w=3840&q=75)
Transcribed Image Text:[ Choose ]
Commitment device
Framing
Sunk cost fallacy
Status-quo bias
Default rules
Time inconsistency
[ Choose
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