Question

Suppose you earn $50 working at the ice cream shop for 5 hours. On your way home, you find $50 next to a garbage can. You are excited for the extra money and decide to spend it on new shoes as soon as you can, whereas you are saving your paychecks to pay off your credit card debt. This scenario of viewing money differently is an example of _________.

Answer 1

Answer: This scenario of viewing money differently is an example of rational behavior.

Explanation:

Rational behavior means the people try to be at their best on the basis of the value and data that they possess. This includes the current and future situation. The benefits of one's own action is weighed before performing that action.

When the benefits of the action is more such as taking the $50 note nearby garbage is a rational behavior. Here the optimum level of benefit can be attained by taking $50 that is equal to the pay check.