Wade Is Thinking About Starting a Company to Run Jails

question 45

Multiple Choice

Wade is thinking about starting a company to run jails and prisons but wants to minimize his risks, so he works with various states to get a long-term contract and guarantees of minimum occupancy levels. Wade is becoming a part of the __________.

• A) prison-industrial complex
• B) state profit system
• C) cradle to prison pipeline
• D) humane prison movement

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Definitions:

Passive Investments

Investment strategies that involve minimal buying and selling actions, typically focused on long-term appreciation and mimicking market or sector indexes.

Regret Avoidance

Notion from behavioral finance that individuals who make decisions that turn out badly will have more regret when that decision was more unconventional.

Overconfidence

A cognitive bias where an individual overestimates their abilities or the precision of their knowledge, often leading to mistakes in judgment.

Behavioral Biases

Psychological tendencies that affect investment decisions and financial behaviors.