​People Make Mistakes in Allocating Their Time

question 41

Multiple Choice

​People make mistakes in allocating their time:

• A)only when leisure time is an inferior good.
• B)because the future is uncertain.
• C)more often when the cost of making a mistake is high.
• D)only when economists remove the assumption that individuals are rational.
• E)because information is free and readily available.

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Definitions:

Permissive

Referring to a parenting or management style characterized by low demands with high responsiveness, often allowing considerable self-regulation.

Impulsiveness

A tendency to act on a whim, displaying behavior characterized by little or no deliberation, reflection, or consideration of the consequences.

Syntax

The aspect of grammar that specifies the rules for arranging and combining words to form phrases and sentences.

Motherese

A simplified and exaggerated form of speech, often used by adults when talking to babies and young children, which is believed to aid language acquisition.