According to Dual-Process Theories of Decision Making, When Complicated or Important

question 88

Multiple Choice

According to dual-process theories of decision making, when complicated or important decisions need to be made, people use _____ strategies.

• A)simplistic
• B)fast and frugal
• C)intuitive
• D)rule-governed

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Definitions:

Present Value

The valuation in today's terms of a prospective future sum of money or cash inflows, utilizing a particular return rate.

Initial Cost

The initial expenditure required to acquire an asset or to start a project, incorporating all necessary expenses to bring it to a usable state.

Net Present Value

This signifies the net difference in present value terms of cash received versus cash paid out over an outlined time interval.

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.