In One Study, People Who Make Their Living Predicting World

question 97

Multiple Choice

In one study, people who make their living predicting world events (government officials, foreign policy professors, newspaper columnists, etc.) were asked to predict U.S. and world politics over the next several years. Those who were most accurate were more likely than others to

• A) be extremely conservative, politically.
• B) be extremely liberal, politically.
• C) base their predictions on historical analogy.
• D) have reservations about the accuracy of their predictions.

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Definitions:

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, recognizing income based on the investor's share of the earnings.

Amortizations

The act of spreading out loan payments over a period of time, including both the principal and the interest.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in producing and selling its products.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the value of the business's reputation, brand, and other unquantifiable elements.