Jason's JPMorgan Chase Credit Card Has a 15% Interest Rate

question 63

Multiple Choice

Jason's JPMorgan Chase credit card has a 15% interest rate and a rewards program that gives him 1 point per $1 that he spends. The only option Jason has for point redemption is a $100 statement credit that would cost Jason 10,000 points. On January 7, 2012, Jason noticed he has 8,750 reward points accumulated on his JPMorgan Chase card. On that same day, he received an offer from Bank of America for a credit card with an identical rewards program and an 8% interest rate. If Jason cancels his JPMorgan Chase card and accepts the offer for the Bank of America card, the accumulated 8,750 reward points that he will not be able to redeem are an example of a:

• A) network cost.
• B) bandwagon cost.
• C) card cost.
• D) credit cost.
• E) switching cost.

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Definitions:

Predictability And Unpredictability

Concerns the extent to which future events are perceived as being certain or uncertain, affecting behavior and decision-making.

Nature And Nurture

The debate regarding the relative contributions of genetics (nature) and environment (nurture) to an individual's physical and behavioral characteristics.

Continuity And Stages

The debate in developmental psychology about whether development is a gradual, continuous process or a series of distinct stages.

Discrete Age-Linked Stages

The concept that development occurs in distinct, clearly defined stages that are linked to specific ages, with each stage bringing about different abilities and behaviors.