The "Barnum Effect," in Which Vague Statements About One's Future

question 14

Multiple Choice

The "Barnum effect," in which vague statements about one's future or personality may be seen as accurate and valid, occurs because of the __________.

• A) self-fulfilling prophecies it creates
• B) representativeness heuristic
• C) base rate information it relies on
• D) principle of the "sucker effect"

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Definitions:

Income Ratio

The Income Ratio is a financial metric used to assess a company's profitability by comparing its income to a particular base, such as revenue or assets.

Capital Balance

The amount of money invested in a business by its owners or shareholders, reflected in the company's balance sheet.

Revenue Accounts

These accounts track the income earned by a company from its sales or services before any deductions are made.

Expense Accounts

Accounts used to track money spent or costs incurred by a business in its operational activities.