People Tend to Say That They Would Prefer to Have

question 172

Multiple Choice

People tend to say that they would prefer to have $1000 today rather than $1200 two weeks from now-even though, logically, they would be better off with the $1200 in two weeks. The phenomenon underlying this tendency is known as ____.

• A)risk aversion
• B)the certainty effect
• C)temporal discounting
• D)the status quo bias

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Definitions:

Equity

In legal contexts, refers to the body of principles constituting what is fair and right; in finance, refers to the value of an owner's interest in property or a business, after debts are subtracted.

Clean Hands

A legal doctrine stating that a party seeking equitable relief must be free from wrongdoing in the matter before the court.

Equitable Maxim

Fundamental principles or legal standards derived from equity law, guiding fair and impartial judgement in cases where common law is inadequate.

Equity

The principle of fairness and justice in the legal system, often compared to and different from strict legal rules or statutes.