Both Hans and Gretchen Have a Job Interview Next Week

question 100

Multiple Choice

Both Hans and Gretchen have a job interview next week. Hans is looking forward to the opportunity the job could provide, even though he already has a job, and finds he is excited about the interview. Gretchen is extremely stressed and panicking about her interview because she desperately needs the job. What theory of emotion best explains the differences in feelings that Hans and Gretchen are experiencing?

• A) James-Lange theory
• B) Discrete emotions theory
• C) Two-factor theory
• D) Somatic marker theory

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Definitions:

Real Option

An analytical method for valuing flexibility in decision-making, emphasizing the ability to modify plans in response to changing market conditions.

Estimated NPV

Estimated NPV (Net Present Value) is the calculation used to assess the profitability of an investment or project, representing the difference between the present value of cash inflows and outflows.

Certainty Equivalents

The guaranteed amount of money that a person would accept instead of taking a chance on a higher, but uncertain, amount.

Zero Risk

A theoretical state in which an investment has no risk of financial loss, though practically unachievable in the real world.