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When People Are Making Decisions Among Several Different Choices (E

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Essay

When people are making decisions among several different choices (e.g., choosing a car to purchase), there are several patterns of irrational thought to which they commonly fall prey. Please identify and discuss three of these.


Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities, such as gasoline, cigarettes, or gambling, usually intended to discourage their use or to raise revenue.

Luxury Boats

Expensive, high-end boats equipped with superior amenities, designed for comfort, performance, and status.

Tax Burden

The measure of the total taxes paid by an individual, corporation, or another entity relative to its income, assets, or consumption levels.

Elastic

A characteristic of a good or service that indicates a greater than proportional change in quantity demanded or supplied in response to price changes.

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