Sally must submit a form to enroll in her company's flexible medical benefits program.Although she has been employed over a year,she has yet to complete the form.Which type of irrational behavior does this represent?

A) status quo bias
B) mental accounting
C) loss aversion
D) risk aversion

Question

Garrett Brown · Accepted Answer

Final Answer : A, Explanation :  Sally's behavior represents a status quo bias, which is the tendency to stick with the default or current option, even if it's not the best choice. In this case, Sally may be hesitant to enroll in the program because she's used to not having it, or simply because she hasn't taken the time to fill out the form. This is a common behavior that can lead to missed opportunities or suboptimal choices.

Sally must submit a form to enroll in her company's flexible medical benefits program.Although she has been employed over a year,she has yet to complete the form.Which type of irrational behavior does this represent?

A) status quo bias
B) mental accounting
C) loss aversion
D) risk aversion

Definitions

Learning Objectives

Learning Objectives

Related questions

Sally must submit a form to enroll in her company's flexible medical benefits program.Although she has been employed over a year,she has yet to complete the form.Which type of irrational behavior does this represent?A) status quo biasB) mental accountingC) loss aversionD) risk aversion

Definitions

Learning Objectives

Learning Objectives

Related questions

Sally must submit a form to enroll in her company's flexible medical benefits program.Although she has been employed over a year,she has yet to complete the form.Which type of irrational behavior does this represent?

A) status quo bias
B) mental accounting
C) loss aversion
D) risk aversion