When a fiRm Uses the Subjective Approach to Assign Discount

question 146

True/False

When a firm uses the subjective approach to assign discount rates to projects, the firm will assign
its highest discount rate to those projects which are mandated by the Government.

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Definitions:

Language Acquisition Device

A hypothetical mechanism in the brain that Noam Chomsky proposed allows humans to acquire language naturally.

Noam Chomsky

An American linguist, philosopher, cognitive scientist, historian, social critic, and political activist known for his theory of generative grammar.

Biological Propensity

Biological propensity involves the natural inclination or tendency within individuals due to genetic, hormonal, or neurophysiological factors to exhibit certain behaviors or to develop certain conditions.

Linguistic Relativity

The hypothesis that the structure of a language influences its speakers' world view or cognition.