Matt Has $2000 Saved for a Trip at Spring Break

question 62

Multiple Choice

Matt has $2000 saved for a trip at Spring Break.Over Christmas break he decides to spend $400 of it on gifts instead of putting the gifts on his credit card,thus avoiding interest charges.He gradually replaces it in his savings account over the next two months.An economist would say this behavior is:

• A) rational.
• B) irrational.
• C) utility minimizing.
• D) not observable.

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Definitions:

Behavioral Perspective

An approach in psychology focusing on observable behaviors, emphasizing the learned or conditioned nature of behavior.

Anxiety

A mental health condition characterized by feelings of worry, nervousness, or fear that are strong enough to interfere with one's daily activities.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms occurring within one month after exposure to a traumatic event.

Hurricane

A hurricane is a powerful tropical cyclone with sustained winds of at least 74 miles per hour, known for causing significant weather-related disasters.