Horatio, age 17, took his parents' car without asking last Friday. He did not get in an accident, and he did not get caught. Which of the following statements is the most likely to be true?Group of answer choicesHoratio will be less likely in the future to take his parents' car without asking than peers who have not tried it.Horatio will be more likely in the future to take his parents' car without asking than peers who have not tried it.Horatio will rate the benefits of taking his parents' car without asking lower than peers who have not tried it.Horatio will rate the risks of taking his parents' car without asking higher than peers who have not tried it.

Which of the following statements are true? Children are considered vulnerable consumers becauseGroup of answer choicesThey are dependent on their parents financiallyThey are not cognitively mature enough to understand the intent of marketersThey cannot make independent purchase decisions

Suppose all 18-year-olds are identical in every way except that some have easy access to credit (i.e., they face a low interest rate when borrowing money) while others have a difficult time accessing credit (i.e., they face a high interest rate when borrowing money).Which of the following statements is NOT true?Group of answer choicesThose who have easy access to credit will be more likely to go to college than those who do not have easy access to credit.No one without easy access to credit will go to college.The present value calculation of university degree will be higher for those who have easy access to credit than for those who do not have easy access to credit.Some people who have easy access to credit will not go to college.Those who have easy access to credit have a lower rate of discount than those who do not have easy access to credit.

Which of the following statements about the ‘What is Risk?’ section of the lecture material based on the diagram below are TRUE:A risk-averse individual would always prefer A to B because they both offer the same expected reward while B has a higher level of risk than A.A risk-averse individual would always prefer A to C because A has a significantly lower level of risk than C.Question 2AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

Multiple Choice QuestionWhich of the following is true when the chance is high that a borrower will repay a loan?Multiple choice question.The lender will charge a higher interest rate.The lender will charge a lower interest rate. The borrower will charge a lower the interest rate.  The borrower will charge a higher interest rate.

Which of the following statements about risk aversion is TRUE?a.Risk aversion will always lead to a negative outcome.b.Ambitious people with power that can be taken away are more susceptible to risk aversion.c.Preferring a 50/50 chance of winning $200 to a guaranteed win of $50 is an example of risk aversion.d.Both (b) and (c).