Steve Is Finding It Impossible to Get Over His Most

question 94

Multiple Choice

Steve is finding it impossible to get over his most recent break-up and finds himself talking about her constantly.An example of a commitment device that Steve could use to get over her would be:

• A) to allow Steve's best friend to punch him in the arm any time he mentions her name.
• B) to take a cold shower every morning.
• C) to start dating someone else.
• D) None of these is a commitment device.

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Definitions:

Consumer's Income

The total amount of earnings available to an individual or household to spend or save after taxes.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given budget at current prices.

Money Income

The total amount of money or monetary earnings received by an individual or household over a certain period of time.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford with their income level.