The Status Quo Bias Implies That

question 18

Multiple Choice

The status quo bias implies that:

• A) people's actions often are influenced by what they perceive as the default choice.
• B) people are restricted in their choices.
• C) people are biased toward making a mistake.
• D) people do not like making changes.

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Definitions:

Zero Growth Stock

Zero growth stock refers to shares in a company that is expected to experience neither growth nor decline in its dividends or earnings in the foreseeable future.

Required Rate

The minimum return an investor is willing to accept when investing in a project, taking into account the risk level of the investment.

Annual Dividend

The total amount of money paid by a company to its shareholders in the form of dividends over a year.

Gross Domestic Product

A measure of the economic output of a country, calculated as the total value of all goods and services produced within the country's borders in a specific time period.