Grace Makutsi Finally Bought a Pair of Blue Shoes That

question 126

Multiple Choice

Grace Makutsi finally bought a pair of blue shoes that she had been coveting for a long time.In less than a week she discovered that the shoes were uncomfortable.Grace went back to wearing her old pair and stashed away the new pair.When asked by her boss,Mme.Ramotswe,why she does not simply give away the new pair,she said: 'But I paid so much for them.' Grace's behaviour

• A) is rational: she should not discard a valuable item.
• B) ignores the fact that the purchase price is now a sunk cost and has no bearing on whether she should give them away or not.
• C) supports the endowment effect which states that ownership of an item makes it more valuable.
• D) is rational because the more you pay for an item the more valuable it is.

---

Definitions:

School-Age Children

Children in the age range of 6 to 12 years who are typically enrolled in elementary school.

Sensitive Period

A specific time frame in development when the ability to acquire certain types of skills or knowledge is enhanced.

Egocentrism

A developmental stage where an individual is unable to differentiate between their own perspective and that of others, often seen in children.

Concrete Operational Thinking

A stage of cognitive development in children, as identified by Piaget, where individuals can think logically about concrete events and understand the concept of conservation.