If two economies are identical (including having the same saving rates, population
growth rates, and efficiency of labor), but one economy has a smaller capital stock, then
the steady-state level of income per worker in the economy with the smaller capital
stock:
a) will be at a lower level than the steady state of the high capital economy.
b) will be at a higher level than the steady state of the high capital economy.
c) will be at the same level as the steady state of the high capital economy.
d) will be proportional to the ratio of the capital stocks in the two economies.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.