An Analytical Tool Which Helps to Organize the Decision Process

question 60

Multiple Choice

An analytical tool which helps to organize the decision process by presenting a graphical comparison of investment choices is called a(an) :

• A) module hierarchy diagram.
• B) "what if" simulation.
• C) decision tree.
• D) random simulation.

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Definitions:

Laffer Curve

A theoretical representation of the relationship between tax rates and tax revenue, suggesting there is an optimal tax rate that maximizes revenue.

Tax Revenue

The financial proceeds that are secured by governments through the imposition of taxes.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.

Lewin's Model

A psychological model of change consisting of three stages: unfreezing, changing, and refreezing.