When Jeremy Looks at the Monetary Costs and Benefits of Moving

question 11

Multiple Choice

When Jeremy looks at the monetary costs and benefits of moving, he found that he would be on net $50,000 better off by moving. He decides to stay where he is and not move. Which of the following could explain this behavior?

• A) He has a longer time horizon than suggested by the discount rate he used to calculate the present value of the benefits of moving.
• B) He believes that if the move does not work out, he could easily move back and be no worse off.
• C) He dislikes the climate in the city he planned to move almost as much as his current city's climate.
• D) He places a high psychic cost of moving.

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Definitions:

Survey

A method of gathering information from individuals, usually by asking a series of questions to collect data on various topics.

Comparison Group

A group in a study that does not receive the experimental treatment and is used as a benchmark to measure the effect of the treatment.

Cross-Sequential Design

A research design that combines both cross-sectional and longitudinal methods to study how individuals of different ages change over time.

Surveys

Surveys are research methods that collect data from a predetermined group of respondents to gain information and insights on various subjects.