Question

1 multiple choice 2 points according to behavioral economics, placement of goods in retail stores is often designed to accomplish which of the following? maximize convenience for customers maximize the amount of product the store can display maximize impulse buying by consumers minimize shelving costs 2 multiple choice 2 points because gun violence is portrayed frequently on television and in movies, people mistakenly assign too high of a probability that they will fall victim to gun violence and too low of a probability to more likely but less publicized events. this phenomenon illustrates that people suffer from hindsight bias. that events are poorly framed by the media. the self - serving bias at work. the effect of the availability heuristic.

Explanation:

1. Behavioral economics studies how psychology influences economic decisions. Retailers use product placement to influence consumer behavior. Maximizing impulse buying (unplanned purchases) is a key goal as it boosts sales. Convenience (while a factor) is not the main design - goal from a behavioral economics perspective focused on profit - driven consumer influence. Maximizing display amount is more about inventory management and not directly tied to behavioral economics' focus on consumer decision - making. Minimizing shelving costs is a cost - related operation aspect, not a behavioral economics strategy for consumer behavior.
2. The availability heuristic is a mental shortcut where people judge the probability of an event based on how easily examples come to mind. Since gun violence is frequently portrayed (easily available in memory), people over - estimate its probability. Hindsight bias is the tendency to believe, after an event has occurred, that one would have predicted it. Self - serving bias is the tendency to attribute positive events to one's own character but negative events to external factors. The framing of events by the media (while related) is not the specific psychological phenomenon described here. The phenomenon is about the ease of recalling an event (availability) rather than how it is presented (framing).

Answer:

1. C. maximize impulse buying by consumers
2. D. the effect of the availability heuristic