Which of the Following Is an Example of Schematic Reasoning

question 12

Multiple Choice

Which of the following is an example of schematic reasoning?

• A)A politician gathers all relevant information and bases his/her decision on a rational calculation.
• B)A politician conducts extensive research before making a decision.
• C)A politician matches what he/she sees with prototypical experiences in order to decide on a course of action.
• D)A politician chooses a course of action that he/she deems "good enough."

---

Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.

Cost Method

An accounting method used to record investments, where the investment is recorded at its acquisition cost without recognizing periodic gains or losses.

Outstanding Stock

The total shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Net Income

The remaining earnings of a company after deducting all expenditures and taxes from the revenues.