Jen's Dad Sends Her to the Grocery Store for a Few

question 28

Multiple Choice

Jen's dad sends her to the grocery store for a few last-minute dinner items.Jen repeats the list of ten items as she walks to the store but can remember only the first and last three items when she gets there-she is unable to remember the four in the middle.Why did she forget the four items in the middle of the list?

• A) The items were probably vegetables,since research shows that vegetable names are difficult for most people to remember.
• B) Exercise tends to degrade information if it has just been learned.
• C) Because her father gave her the list all at once,Jen wasn't able to hold each item in her short-term memory long enough to encode it for long-term storage.
• D) The four middle items never entered her sensory memory.

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Definitions:

Internal Growth Rate

The maximum rate at which a company can expand using only internal financing sources, without external financing.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage of the company's total earnings.

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends, indicating how much profit is reinvested.

Net Income

The amount of money remaining after all operating expenses, taxes, and interest have been deducted from total revenue.