Tom Rationalizes That His Illicit Use of Marijuana Is Permissible

question 58

Multiple Choice

Tom rationalizes that his illicit use of marijuana is permissible because the drug is not particularly habit-forming and therefore should not be prohibited by law. Tom's rationalization serves to ________.

• A) increase his acceptance by his pot-smoking friends
• B) increase his cognitive dissonance
• C) reduce his fear of being caught
• D) reduce his cognitive dissonance

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Definitions:

Present Value

The immediate financial value of a future cash sum or succession of cash inflows, evaluated with a specified return rate.

Expected Cash Flows

Forecasted cash inflows and outflows for a business or project, often used in financial modeling to evaluate investment viability.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures.

Premium

An amount paid that is above the standard or nominal cost, often for insurance, superior goods, or to designate a higher level of service or coverage.