While Waiting in Line to Buy One Cheeseburger for $1

question 107

Multiple Choice

While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75. She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of

• A) marginal decision making.
• B) basing decisions on total, rather than marginal, value.
• C) an unintended consequence.
• D) the fallacy of composition.

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Definitions:

Attribution

The process by which individuals explain the causes of their own and others' behaviors and outcomes.

Positive Organizational Behavior

An area of study within organizational behavior that focuses on the application of positive psychological principles to improve employee performance, satisfaction, and well-being.

Contingencies Of Reinforcement

The specific conditions or situations that determine whether a response will be reinforced, thus affecting the likelihood of the behavior recurring.

Fundamental Attribution Error

The tendency to over-emphasize personal characteristics and ignore situational factors when judging others' behavior.