Gene Plays Another Hour of Computer Games Rather Than Study

question 206

Multiple Choice

Gene plays another hour of computer games rather than study for the hour even though he knows that the next day, when he takes his test, he will regret his decision. Gene is showing

• A) the endowment effect.
• B) bounded rationality.
• C) bounded self-interest.
• D) bounded will power.

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Definitions:

Equipment

Tools, machinery, or other durable items necessary for the completion of a task or the operation of a business.

Resale Value

The estimated market value of an asset if sold again in the future.

Office Furniture

Desks, chairs, tables, cabinets, and other furnishings used in an office setting to facilitate work and storage.

Double-Declining-Balance

An accelerated method of depreciation which doubles the normal depreciation rate, reducing the asset's book value more quickly.