) in Exhibit 14­2, If a Consumer Gathers an Amount

question 104

Multiple Choice

) In Exhibit 14­2, if a consumer gathers an amount of information equal to I3,

• A)she has made the optimal search
• B)she is relying solely on common knowledge
• C)she has acquired all available information that is beneficial to her
• D)further information will be costless to her
• E)she should increase her search

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Definitions:

Overly Optimistic

Describes a tendency to hold a rosier outlook than reality might support, often resulting in unrealistic expectations.

Hierarchy Of Goals

A prioritized structure of objectives, ranging from the most immediate and individual to the broad and long-term.

Planning Fallacy

The tendency to underestimate how much time is needed to complete a task, leading to overly optimistic time estimations.

Optimistic Mindset

A mental attitude characterized by hope and confidence in success and positive outcomes.