By Charging Users That Skip Workouts, the Designers of GymPact

question 121

Multiple Choice

By charging users that skip workouts, the designers of GymPact are

• A)increasing the marginal cost of exercise
• B)increasing the marginal benefit of exercise
• C)increasing the marginal cost and the marginal benefit of exercise by the same amount.
• D)decreasing the marginal cost and the marginal benefit of exercise.

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Definitions:

Cultural Heritage

The heritage consisting of tangible objects and intangible qualities inherited from one generation to the next within a community or society.

Gambler's Fallacy

The erroneous belief that if a particular outcome occurs more frequently in a specific period, it will occur less frequently in the future, or vice versa.

Law Of Small Numbers

The cognitive bias whereby people draw broad conclusions from a small set of observations.

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how similar it is to our stereotypes of similar occurrences.