The Availability Heuristic Functions on Which Principle

question 71

Multiple Choice

The availability heuristic functions on which principle?

• A)Things that are more easily remembered are assumed to occur more often.
• B)Things that we understand now always would have happened.
• C)If we are certain,we must be right.
• D)The best evidence affirms our hypothesis.

Evaluate personal opportunity costs in consumer purchases.

Know the legal resources available to consumers including small claims court and class-action suits.

Differentiate between mediation, arbitration, and other conflict resolution methods.

Identify reputable organizations and their roles in consumer product safety and quality assurance.

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Definitions:

Cash Flows

The sum of funds flowing in and out of a company, impacting its ability to cover short-term obligations.

Initial Cost

The total of all expenses incurred to acquire an asset or investment, including purchase price and all related fees.

Average Accounting Rate of Return

A financial ratio that measures the expected return on an investment based on its net income and initial cost.

Straight-Line Depreciation

An arrangement for allocating the cost of a tangible asset over its duration of usefulness in identical annual segments.