Alice,a Five-Year-Old,used to Cry and Protest Whenever Her Mother Took

question 113

Multiple Choice

Alice,a five-year-old,used to cry and protest whenever her mother took her to the dentist for monthly dental checkups.After a dozen visits,however,she stopped crying,even though Alice admits that she still does not like going to the dentist.This change in Alice's response to dental visits is an example of _____.

• A) anticipation
• B) lateralization
• C) rumination
• D) expectation
• E) habituation

Learn about the importance of context and situation in shaping economic decisions.

Describe the role of System 1 and System 2 thinking in decision making.

Analyze the effect of cognitive biases such as overconfidence, hindsight bias, and confirmation bias on economic decisions.

Understand how behavioral economics explains suboptimal decisions and systematic errors.

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Definitions:

Maturity Date

The date on which a financial instrument, such as a bond or loan, is due to be repaid in full.

Bank Credit Cards

Financial tools issued by banks that allow cardholders to borrow funds within a pre-approved limit for purchases or cash withdrawals.

Fees

Charges levied for services provided, often related to professional, financial, or administrative tasks.

Factoring Receivables

The financial transaction of selling accounts receivable to a third party (factor) at a discount to obtain immediate cash.