Question

QIDIARKET EFHICIENCY Left:0:28:08 Gagandeep Singh: Attempt 1 5) strong-form Save Question 6 (1 point) Ted constantly ignores the effects of inflation on money. Ted is suffering from which one of the following? 1) endowment effect 2) money illusion 3) regret aversion 4) myopic loss aversion 5) sunk cost fallacy Save Com 1st M D LL

Answer 1

6) Money illusion ignores the effect of inflation

7) Mental accounting refers to desired value

8) Illusion of knowledge addresses this bias of superior information

9) The first definition appears to be plausible. However, the fourth one is close enough too.

10) Familiarity bias is the one where one tends to invest with the employer as they are more familiar with the business.