An Example of a Commitment Device Would Be

question 46

Multiple Choice

An example of a commitment device would be:

• A) buying yourself an ice cream after going to the gym.
• B) putting a note on the cookie jar that you want to lose weight.
• C) a swear jar that you and your friends agree must be paid $5 each time someone swears.
• D) All of these are examples of commitment devices.

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Definitions:

Cream Skimming

The practice of selectively choosing the best or most profitable customers, clients, or opportunities, often leaving less desirable ones for others.

Import Substitution

A development strategy that emphasizes domestic manufacturing of products that were imported.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

National Security

National security involves the safety and defense of a nation, including its citizens, economy, and institutions, protected against threats ranging from terrorism to foreign invasions.