Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A)A stock can possibly pay dividends forever,but bonds have a fixed number of payments.
• B)Differences of opinion about a bond's future may vary considerably but there is less difference about a stock's future.
• C)The future growth of a stock is more certain than the payments of a bond.
• D)Bonds represent partial ownership in a firm but stocks do not.

Learn the marginal-cost-marginal-benefit rule and its application in determining the optimal provision of public goods.

Understand the concept of cost-benefit analysis and how it applies to public goods.

Understand cognitive dissonance and its impact on attitude change.

Learn the difference between situational and dispositional attributions and how they affect our understanding of behavior.

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Definitions:

Destructive

Causing great and irreparable harm or damage.

Defense Mechanisms

Psychological strategies used by individuals unconsciously to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts and memories are unconsciously pushed out of conscious awareness.

Displacement

A defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.