One Explanation for the Primacy Effect Is That

question 122

Multiple Choice

One explanation for the primacy effect is that

• A)information obtained early is usually more important than information obtained later.
• B)people tend to pay closer attention to central trait information.
• C)the meaning of information obtained later is often altered to fit with earlier impressions.
• D)people tend to seek out the most reliable sources of information earlier.

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Definitions:

Book Value

The net value of a company's assets as listed on the balance sheet, calculated as total assets minus intangible assets (like goodwill) and liabilities.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what the asset can be sold for or its scrap value.

Capital Lease

A lease agreement in which the lessee records the leased asset as an asset in its balance sheet, and the lease payment obligations as liabilities.