Which of the Following Is NOT a Common Mistake That

question 63

Multiple Choice

Which of the following is NOT a common mistake that leads to irrational decisions?

• A) mental accounting
• B) loss aversion
• C) risk aversion
• D) misperceptions about opportunity costs

---

Definitions:

Decrease

A reduction in quantity, size, intensity, or the importance of something.

Tequila

A distilled beverage made from the blue agave plant, primarily in the area surrounding the city of Tequila, Mexico, known for its strong flavor and alcoholic content.

Classical Conditioning

An educational procedure in which the frequent pairing of two stimuli causes a response initially triggered by the second stimulus to be eventually triggered by the first stimulus alone.

Aversive

Refers to an unpleasant stimulus that induces changes in behavior.