How Are Changes in Opportunity Cost Related to Decision-Making Behavior

question 37

Multiple Choice

How are changes in opportunity cost related to decision-making behavior?

• A) The lower the opportunity cost of doing an activity X, the more likely activity X will be done.
• B) The higher the opportunity cost of doing activity X, the more likely activity X will be done.
• C) Changes in the opportunity cost play no role in decision-making.
• D) The lower the opportunity cost of doing activity Y, the more likely activity X will be done.
• E) The higher the opportunity cost of doing activity Y, the less likely activity X will be done.

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Definitions:

Bartlett

Refers to Frederic Bartlett, a British psychologist who made significant contributions to the study of memory and cognition, particularly regarding how people reconstruct past events and remember stories.

Schemata

Schemata are cognitive frameworks or concepts that help individuals organize and interpret information, based on their past experiences and knowledge.

Serial Reproduction

A method in psychological research where information is passed from one individual to another sequentially, often used to study how information changes or degrades over repeated transmissions.

Exhaustive Reconstruction

A detailed and comprehensive method of attempting to recreate or rebuild information or an event from memory in its entirety.