The Payback Method

question 45

Multiple Choice

The payback method:

• A)is a complex method of analysis.
• B)is infrequently used.
• C)incorporates the time value of money.
• D)ignores benefits and costs that occur after the project has paid for itself.

Recognize the influence of discriminative stimuli on behavior.

Understand the concept of avoidance and escape learning.

Learn the role of reinforcement (positive and negative) in shaping behavior.

Identify the relationship between reinforcement schedules and resistance to extinction.

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Definitions:

Proprietary Income

Income generated from the ownership of proprietary technology, information, or processes that gives a firm a competitive advantage.

Government-sponsored Businesses

Enterprises that are initiated and sometimes funded by the government but are operated under private ownership or public-private partnership.

Public Utilities

Essential services provided by both government and private sectors including water, electricity, and transportation.

Efficiency Loss

The cost to society created by market inefficiency, often associated with the misallocation of resources or markets not reaching equilibrium.