Steve Has Only 20 Minutes to Get Lunch

question 78

Multiple Choice

Steve has only 20 minutes to get lunch.Although he really likes McDonald's,the line is very long and he is concerned that he will not have a chance to get through the line and eat his lunch before he is due back at work.Steve perceives ________ in going to McDonald's today.

• A) time risk
• B) functional risk
• C) physical risk
• D) psychological risk
• E) social risk

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Definitions:

Optimum Performance

The most efficient and effective level of functioning of a system or device.

Menu Costs

The costs incurred by firms in order to change their prices, including costs related to printing new menus, re-tagging items, or advertising new prices.

Inflation-induced Tax Distortions

Discrepancies in the effective tax burden caused by inflation, which can lead to distorted investment and consumption decisions.

Shoeleather Costs

Shoeleather costs are the metaphorical costs of inflation, referring to the time and effort spent trying to avoid holding onto cash as it loses value.