A Company Has Designed an Alarm Clock That "Runs and Hides

question 156

Multiple Choice

A company has designed an alarm clock that "runs and hides" after going off, forcing the person to get up and find the alarm clock if he or she wants to shut off the alarm. According to behavioral economists,

• A)it is unlikely to alter people's tendency to shut off the alarm and ultimately oversleep.
• B)the alarm clock keeps people from hitting the snooze button and taking advantage of the availability heuristic.
• C)the alarm clock serves as a precommitment device, helping the user to stick to the originally planned wake-up time.
• D)overconfidence effects will discourage use of such devices.

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Definitions:

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales or revenue.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period, indicating the efficiency of inventory management.

Debt Ratio

A financial ratio that measures the proportion of a company’s total debt to its total assets, indicating the company's leverage level.

Return on Common Stockholders' Equity

This metric measures the profitability attributable to equity holders, presenting the percentage of net income generated for each dollar of common stockholders' equity.