Red is on a popular TV game show where you can win $1,000,000. He is currently at $16,000 and is not certain that he knows the answer to the $32,000 question. His decision could be influenced if the host says "You can take the $16,000 and go home, and that's a lot of money," or "$32,000 is way more money than $16,000." There is a tendency for the contestants to do whatever the host suggests, and Fred will probably be no different. This is the effect of .

Fred will probably be no different. This is the effect of framing.

Explanation:

Framing is also called as concept bias. When Fred is bias he takes other concepts and he will be twisted as to which decision to make. Manipulating the decisions is the framing effects. The framing effect comes into action when a person reacts towards it and when decision is taken.

Here Fred is framed by the host to continue the game to win more money. The TV hosts frames him thinking that if he loses the entire money would be saved by the game show.

answer; microeconomics;