(Consider This)For People That Use Commitment Contracts to Motivate Achievement

question 47

Multiple Choice

(Consider This) For people that use commitment contracts to motivate achievement of a goal,people have the choice of their penalty money (from failing to reach the goal) to go to either charities they like or charities they hate (anti-charities) .From a behavioral economics perspective:

• A) designating an anti-charity should be more effective because loss aversion will provide additional motivation.
• B) designating a charity (versus an anti-charity)should be more effective because it avoids all potential for loss.
• C) it shouldn't matter whether one designates a charity or an anti-charity.
• D) self-interest biases generally keep people from choosing the anti-charity.

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Definitions:

Output Demanded

Refers to the quantity of goods or services that consumers and other economic agents are willing to buy at a given price.

Output Supplied

Refers to the quantity of goods or services that producers are willing and able to sell at a given price level within a specified period.

Aggregate Demand

Complete economic consumption desires for all goods and services, measured at a particular total price level within a predetermined timeframe.

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a base year.