Every Time He Loses His Wallet, Ricardo Cannot Stop Checking

question 128

Multiple Choice

Every time he loses his wallet, Ricardo cannot stop checking the back pocket of the pants he is wearing. He knows the wallet is not there, and yet he continues to put his hand in the pocket to check just "one more time." This tendency to try to solve problems in the same way every time is called ________.

• A) a mental set
• B) a means-end analysis
• C) noncompensatory modeling
• D) prototypical idealization

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Definitions:

Risk

The potential for losing something of value or the uncertainty regarding the outcome of an investment or decision.

Investment Spending

The expenditure on physical assets like buildings, machinery, and equipment which is used to produce goods and services in the future.

Government Policy

Strategies or actions taken by a government to influence its economy or society, which may include laws, regulations, decisions, and actions.

Private Saving

The portion of individuals' or households' income that is not consumed and is instead saved or invested.