Karina Often Plans to Go to an Aerobics Class at the Gym

question 22

Multiple Choice

Karina often plans to go to an aerobics class at the gym but ends up staying home and watching Netflix instead. She recently joined a gym that requires members to reserve a space in a class before attending. If a member has reserved a space, but does not show up for the class, a fine of $15 is charged to the member's account. This penalty scheme is designed to combat:

• A)commitment aversion.
• B)the sunk cost fallacy.
• C)time inconsistent behavior.
• D)the fungibility of money.

---

Definitions:

Goods and Services

The two primary categories of offerings in the economy; goods are tangible items, while services are activities or benefits offered for consumption.

Tariffs

Taxes imposed on imported goods and services, which can affect trade dynamics, pricing, and availability of products in a domestic market.

Domestic Producers

Companies that manufacture or produce goods and services within their home country, often contrasted with those producing or outsourcing overseas.

Imported Products

Products brought into one country from another for the purpose of sale, often subject to tariffs, quotas, or trade agreements.