Even Though Mildred Knows That Her Relationship with Her Boyfriend

question 179

Multiple Choice

Even though Mildred knows that her relationship with her boyfriend is in trouble, she decides not to do anything about it (i.e., she will simply neglect the relationship and let it slowly fall to pieces) . Social psychologists would say that her decision to do nothing most reflects ____.

• A) the certainty effect
• B) the omission bias
• C) risk aversion
• D) temporal discounting

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Definitions:

Dollar

The official currency of the United States, also used as a standard monetary unit in many other countries.

U.S. Net Capital Outflow

The difference between the purchase of foreign assets by U.S. citizens and the purchase of U.S. assets by foreigners, reflecting the flow of capital from and into the U.S.

U.S. Saving

The portion of income that individuals, businesses, and the government in the United States set aside rather than spending it immediately.

National Saving

The sum of private and public savings in a country, representing the total income remaining after expenditures on goods and services.