CAASPP Success - Grade 11 Reading Comprehension - Expository #1

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Question 1a

Multiple choice
  • Hyperbolic Discounting

  • Endowment Effect

  • Prospect Theory

  • Supply and Demand

Question 1b

Multiple choice
  • People are always rational in their decisions.

  • Gains and losses are valued equally.

  • Loss aversion.

  • Procrastination.

Question 1c

Short answer

Question 1d

Multiple choice
  • Loss aversion causes irrational choices.

  • Immediate rewards are often preferred over future gains.

  • People value ownership more than market value.

  • Rational decisions maximize utility.

Question 1e

Multiple choice
  • People always make rational decisions to maximize utility.

  • Decisions are often based on perceived gains rather than actual outcomes.

  • Individuals prefer long-term rewards over immediate ones.

  • Economic models should always reflect market value.

Question 1f

Multiple choice
  • Choosing to sell a house at market value.

  • Listing an old car at a high price due to emotional attachment.

  • Choosing an expensive dinner over saving for a future expense.

  • Refusing to sell stocks at a perceived loss.

Question 1g

Multiple choice
  • People value gains and losses differently.

  • Ownership inflated the subjective value of an object.

  • People often prioritize immediate rewards over future gains.

  • Market value should dictate the worth of an object.

Question 1h

Short answer

Question 1i

Multiple choice
  • People value objects more when they own them.

  • People prioritize long-term plans over short-term rewards.

  • Individuals make rational decisions based on utility.

  • People are indifferent to owning personal possessions.

Question 1j

Multiple choice
  • Prospect Theory

  • Endowment Effect

  • Hyperbolic Discounting

  • Rational Choice Theory

Question 1k

Multiple choice
  • Sellers offer fair market prices for items.

  • Sellers inflate prices due to personal attachment.

  • Buyers and sellers agree on item value.

  • Items are sold quickly at reasonable prices.

Question 1l

Multiple choice
  • Exponential Discounting

  • Loss Aversion

  • Market Value

  • Ownership Preference

Question 1m

Multiple choice
  • Ownership decreases the subjective value of an object.

  • People are indifferent to the objects they own.

  • Ownership inflates the subjective value, making selling difficult.

  • People prefer objects with market-dictated values.

Question 2a

Multiple choice
  • Hesitating to sell a stock at a loss.

  • Assigning higher value to personal belongings.

  • Prioritizing immediate rewards.

  • Making rational economic decisions.

Question 2b

Multiple choice
  • "Loss aversion, which implies that the pain of losing something is more intense than the pleasure of gaining something of equal value."

  • "Those who owned the mug demanded a significantly higher price to part with it than what those without a mug were willing to pay for it."

  • "Participants were given two scenarios: one where they could win $100 with a 50% probability or win $50 outright."

  • "This theory plays out in everyday scenarios like overpricing a used car simply because it belongs to you."

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