Paul Owns a Home on the Top of a Hill

question 141

Multiple Choice

Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area.The view was a large factor in his decision to buy the house and Paul values his view at $5000 per month.Sid purchases the undeveloped wooded area with plans to build a retail shopping centre.Sid expects to earn $10,000 a month from the shopping centre,which is $3000 more than his next best alternative.
-Refer to the information above.The least Sid would accept to cease construction of the shopping centre is

• A) $10,000.
• B) $5000.
• C) $3001.
• D) $2000.
• E) $0.

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Definitions:

Daily Life

The routine or day-to-day activities, tasks, and interactions that constitute an individual's regular existence.

Impressions

The immediate thoughts or feelings that are elicited in a person upon encountering something or someone for the first time.

Perception

The process through which people receive, organize, and interpret information from the environment.

Self-serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.