3. Behavioral economics assumes that individuals make rational decisions. The brain allows

individuals to make decisions without having perfect information. Given below are 7 definitions

identify each as an example of: sunk costs, anchoring, loss aversion and framing, familiarity,

status quo, overconfidence, or mental accounting.

a. people who prefer to drive rather than fly because they think it is safer ________________

b. the value individuals place on earning money as opposed to finding in a parking lot

_________________

c. when individuals hold on to an older car because they just got the car repaired and

purchased new tires _______________

Give explanation