You Have a Pair of Pliers and a Bag of Nuts

question 61

Multiple Choice

You have a pair of pliers and a bag of nuts in the shell. You believe you can't shell the nuts because you do not have a nutcracker. Your inability to perceive the pliers as a makeshift nutcracker demonstrates _____ on your part.

• A)functional fixedness
• B)mental set
• C)insight insufficiency
• D)heuristic reasoning

---

Definitions:

Debt-Equity Ratio

An evaluation of corporate leverage, calculated by the division of a company's total liabilities by the equity of its shareholders.

Increased

Refers to a situation where there has been a rise in quantity, value, or size of a particular item or variable.

Declined

A term used when an offer, proposal, or transaction has been refused or not accepted.

Ratio Analysis

The method of evaluating various financial metrics in a company’s financial statements to assess its performance and financial health.