UTS Midterm Long Flashcard

Front

Behavioral economics principle for choosing between a higher immediate salary with limited growth and a moderate salary with extensive development opportunities.

Back

Temporal discounting—evaluating the long-term career value against immediate compensation differences systematically

Front

After receiving a significant raise, you notice your spending has increased to match your new income despite previous savings goals. Which economic self-concept explains this behavior, and how should you address it professionally?

Back

Lifestyle inflation—recognizing spending patterns and implementing intentional financial planning aligned with career goals

Front

You're experiencing decision paralysis when considering multiple financially equivalent job offers. Which economic self-concept would most effectively help resolve this situation?

Back

Comprehensive evaluation—systematically assessing non-financial factors like culture, growth, and alignment with values

Front

Economic principle that helps overcome resistance to change when recognizing better opportunities elsewhere after investing significant time in a career path.

Back

Sunk cost fallacy—recognizing past investments shouldn't dictate future decisions when better alternatives exist.

Front

Your spending habits consistently exceed your income despite adequate salary. Which behavioral economics insight would most effectively address this economic self-management challenge?

Back

Mental accounting—creating category-specific budgets and psychological barriers to prevent impulsive overspending patterns

Front

You’re considering postgraduate education requiring significant loans. Which economic self-concept should guide your evaluation?

Back

Human capital theory—assessing long-term return on investment in career advancement relative to debt incurred

Front

Your company introduces a pension plan requiring immediate contribution trade-offs. Which behavioral economics principle should help you decide participation?

Back

Mental accounting—separating retirement funds into a distinct mental category to ensure consistent savings

Front

Your peers consistently purchase luxury goods, influencing your consumption. Which economic self-awareness principle should you apply?

Back

Relative deprivation—comparing negatively and resenting peers’ financial capabilities

Front

In evaluating job offers, you focus primarily on base salary while ignoring benefits, culture, and growth. Which bias is influencing your decision?

Back

Anchoring bias—fixating on salary as the central decision metric without considering total compensation value

Front

You hesitate to invest in a promising opportunity because of one past financial loss. Which behavioral economics principle explains this?

Back

Loss aversion—overweighting past losses compared to potential future gains