According to your textbook authors, when you buy something like a new television, why or why not does it generally make economic sense to buy the extended warranty? If it does not make sense, what strategy should you pursue instead?
Explain why most prices are listed as $9.99 rather than $10.00. What bias is this phenomenon related to?
Explain why most people are more likely to accept cash from their parents, but not from their romantic partner as a gift for Christmas or Valentine’s Day. What economic problem is an actual gift from your romantic partner designed to overcome?
What is the economic reason why people are required to buy car insurance and health insurance? Your answer should include a discussion of adverse selection.