Suppose a Local Government Is Trying to Reduce Rates of Littering

question 19

Multiple Choice

Suppose a local government is trying to reduce rates of littering in a local park. One person suggests putting up signs saying, "90% of citizens dispose of their trash, helping to keep our park beautiful." Another person suggests putting up a different sign that says, "10% of citizen's litter, reducing the beauty of the park for others." Because individuals are influenced by _______, we would expect the _______ sign to work better at reducing littering.

• A)the endowment effect; first
• B)reverse psychology; second
• C)social norms; first
• D)anchoring; second

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Definitions:

Callable Bonds

Securities that the issuer has the option to repurchase before they reach their due date, at a specified call price.

Carrying Amount

The net amount at which an asset or liability is recognized on the balance sheet, considering factors like depreciation or amortization.

Discount on Bonds Payable

The discrepancy between a bond's nominal value and its market price when the bond is sold below its nominal value.

Journal Entry

A record of a financial transaction in an accounting system, consisting of debits and credits to maintain the double-entry accounting.