The Overall Value of the U

question 56

True/False

The overall value of the U.S.M-2 has grown considerably since 1979 due primarily to the increased use of credit cards and debit cards.

---

Definitions:

Behavioral Economics

Behavioral economics studies how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.

Availability Heuristic

An intellectual quick-step that employs readily recalled instances when contemplating a certain topic, notion, strategy, or judgment.

Endowment Effect

The phenomenon in which individuals value an owned object higher than its market value simply because they own it.

Prospect Theory

Prospect Theory is a behavioral economic theory that describes how people choose between probabilistic alternatives involving risk, where the probabilities of outcomes are known.