The So-Called "Status Quo Bias" in Decision-Making Refers to the Tendency

question 174

Multiple Choice

The so-called "status quo bias" in decision-making refers to the tendency for people to ____.

• A) want to keep things the way they are instead of changing
• B) want to do whatever it is that other people are doing
• C) place more emphasis on present (immediate) outcomes than on future outcomes
• D) place more emphasis on definite outcomes than on probable outcomes

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Definitions:

Allocative Efficiency

A state of the economy in which resources are apportioned in a way that maximizes the overall benefit to society.

Productive Efficiency

A situation where an economy or a production entity cannot produce more of one good without sacrificing production of another good and by using the least costly production techniques.

Long-Run Adjustments

The process by which firms adjust their production levels, input mixes, and operations to reflect changes in the market or economic conditions over a longer period.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility level equal to the cost of producing it.