Harry Makes a Statement to a Group of Friends That

question 252

Multiple Choice

Harry makes a statement to a group of friends that, "people who drive red cars get more speeding tickets". The group agrees with the statement because a member of the group, "Jim", drives a red car and frequently gets speeding tickets. This is an example of making a decision based on

• A)subgoal analysis
• B)divergent thinking
• C)an availability heuristic
• D)convergent thinking
• E)incubation

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Definitions:

Debt

Debt is an amount of money borrowed by one party from another, typically involving repayment of the principal amount along with interest.

Operating Leverage

A metric assessing the impact of increased sales on operational earnings, revealing the balance between a firm's fixed and variable expenses.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses to show the business's core profitability.

DOL

Department of Labor, a U.S. government department responsible for occupational safety, wage standards, unemployment insurance benefits, re-employment services, and some economic statistics.