Kent and Kirsten Are Both Trying to Reduce Their Consumer

question 36

Multiple Choice

Kent and Kirsten are both trying to reduce their consumer debt.Kent isolates several more concrete problems he can solve to achieve his goal,such as paying the highest-interest debts first and freezing credit card spending.Kirsten simply pays her largest debt first because this would seem to be the fastest way to move her debt as close to zero as possible.Kent's plan reflects the problem-solving strategy of _____,while Kirsten's method illustrates the strategy of _____.

• A)forming subgoals; trial and error
• B)means-end analysis; trial and error
• C)working backward; means-end analysis
• D)forming subgoals; means-end analysis

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Definitions:

Self-Control Problem

The difficulty individuals face in resisting short-term temptations to meet long-term goals.

Behavioral Economists

Experts who analyze the influence of psychological, cognitive, emotional, cultural, and social factors on the economic choices of persons and entities.

Self-Interest

That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.

Moral Considerations

Ethical elements that influence decision-making, emphasizing the distinction between right and wrong actions in personal and professional contexts.