Fred and Ann Are Both Given Free Tickets to See

question 131

Multiple Choice

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

• A) both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie.
• B) both bear the same opportunity cost of seeing the movie because they are doing the same thing.
• C) it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free.
• D) the opportunity cost of seeing the movie is zero because the tickets were free.

Identify the stages of the adult life and financial needs cycle.

Recognize the components of financial planning including obtaining, saving, sharing, protecting, and borrowing.

Comprehend the concepts of liquidity and how it affects financial decisions.

Understand the impact of interest rates on the economy and individual financial planning.

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Definitions:

Extended Fishbein Model

An advanced version of the Fishbein model that incorporates additional variables to predict behavior more accurately, focusing on attitudes and the subjective norm towards an action.

Original Model

is the initial instance or prototype from which copies are made or from which something develops or evolves.

Influence of Attitudes

The impact that personal beliefs and feelings have on an individual's behavior and decision-making processes.

Extended Fishbein Model

A model that extends the original Fishbein's theory by considering attitude toward the behavior, subjective norms, and perceived behavioral control as predictors of intentions and behaviors.