Which of the Following Are Examples of the Framing Effect

question 3

Multiple Choice

Which of the following are examples of the framing effect?

• A)Campus "Public Interest Research Groups" receive more operating funds from student registration fees when the default choice is to contribute but a box must be checked to opt out versus a default of not contributing but checking a box to contribute.
• B)Shoppers often purchase extended service and warranty plans even though expected losses are much smaller than the cost of the plans.
• C)In a repeated classroom experiment, half the class was randomly picked to receive an iPod Shuffle of music from the 1970s.The average value placed on the Shuffle is consistently higher for students who received the Shuffle than for those who didn't.
• D)A busy executive who wants to exercise more joins a bicycling club where fellow members will exert pressure upon him if he doesn't go biking.
• E)All of the above.

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Definitions:

Head

The uppermost part of the human body or the leading or directing part of an organization, state, etc.

Wages

Compensation or remuneration paid by an employer to an employee in exchange for work or services rendered.

19th Century

The period from January 1, 1801, through December 31, 1900, marked by industrial, cultural, and political changes worldwide.

Inflation

The economic condition characterized by an increase in prices and fall in the purchasing value of money.