When Purchasing a Car, People End Up Paying a Bit

question 134

Multiple Choice

When purchasing a car, people end up paying a bit more attention than intended to choices such as color and engine size, and a bit less attention than intended on information such as the chances of fatalities should there be an accident with the car. This pattern can be taken as evidence for ____.

• A)the status quo bias
• B)the certainty effect
• C)risk aversion
• D)the Zeigarnik effect

---

Definitions:

Capital Stock

The total amount of a company's stock (both preferred and common) authorized for issuance, representing ownership in the company.

Preferred Stock

A class of stock that typically offers dividends and claim on assets before common stockholders but usually does not have voting rights.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.

Capital Stock

The total amount of shares that a company is authorized to issue, representing the main source of equity for the company.