People Make Mistakes in Allocating Their Time

question 176

Multiple Choice

People make mistakes in allocating their time

• A)because they always act irrationally
• B)despite always having expectations fulfilled
• C)only when leisure is a normal good
• D)because acquiring information is costly
• E)more often when the cost of making a mistake is high

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Definitions:

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Resource

In finance, a resource refers to any financial asset or input that can contribute to a firm's ability to create goods, services, or further financial gains.

Annuity

A financial instrument that provides a consistent series of payments to a person, often employed as a component of a retirement plan.

Equal Payments

Regular payments of the same amount over a specified period, often associated with loans or mortgages.