You Lose $20 from Your Wallet and Decide to Miss

question 199

Multiple Choice

You lose $20 from your wallet and decide to miss an hour from work in order to search for it. What would an economist conclude from your behaviour?

• A) You estimate the expected cost of searching for one hour to be greater than $20.
• B) In your estimation, the expected value of searching for the lost $20 for an hour is less than your hourly wage.
• C) You must earn more than $20 per hour.
• D) In your estimation, the expected value of searching for the lost $20 for an hour exceeds your hourly wage.

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Definitions:

Cognitive Therapy

Cognitive therapy is a form of psychotherapy that emphasizes the identification and restructuring of negative or irrational thoughts and beliefs that contribute to emotional distress and mental health disorders.

Exposure Therapy

A form of psychotherapy that helps individuals confront their fears and anxieties by gradual and repeated exposure to the feared object or context without any danger.

Dialectical Behavior

A comprehensive cognitive-behavioral therapy designed to treat individuals with severe emotional dysregulation, focusing on acceptance and change.

Aversive Conditioning

A behavioral technique involving the use of unpleasant stimuli to reduce or eliminate undesirable behaviors.