Unlike Developed Countries, People in Under-Developed Countries Usually Haggle Over

question 8

Multiple Choice

Unlike developed countries, people in under-developed countries usually haggle over the prices of everyday items because:

• A)the cost of production is low.
• B)the products are in general of poor quality.
• C)of the differences in the opportunity cost of time.
• D)adequate substitutes are available.

---

Definitions:

Framing Effect

The cognitive bias where people decide on options based on whether they are presented in a positive or negative way.

Extended Service

A service agreement that extends beyond the standard warranty period, offering additional protection or maintenance services.

iPod Shuffle

A compact and discontinued music player designed by Apple Inc., notable for its small size, lack of a screen, and shuffle feature for playing music in a random order.

Anchoring Effect

A cognitive bias where individuals rely too heavily on the first piece of information offered (the "anchor") when making decisions.