Participants in a Study on Decision Making Were Asked to Rate

question 155

Multiple Choice

Participants in a study on decision making were asked to rate a particular financial solution for solving a dispute with a neighbor. Half of the participants rated the favorability of a solution in which they would receive $600 and their neighbor would receive $800; the other half of the participants rated a solution in which each party received $500. Which option was the MOST favorably rated?

• A)The option that paid the participants $600 and their neighbors $800 was the most favorably rated.
• B)The option that paid both the participants and their neighbors $500 was the most favorably rated.
• C)The option that paid the participants $600 and their neighbors $800 received the highest percentage of "highly favorable" ratings but also received the highest percentage of "highly unfavorable" ratings.
• D)There was no difference between the favorability ratings for the two options.

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Definitions:

Time And A Half

The payment rate typically used for overtime work, equal to one and a half times the regular hourly wage.

Notes Payable

Short-term or long-term liabilities recorded when a business borrows money or purchases goods or services on credit with a formal written promise to pay.

Calendar-Year Company

A company that operates its fiscal year in alignment with the calendar year, beginning January 1st and ending December 31st.

Balance Sheet

A document detailing a corporation's assets, debts, and owner's equity at a certain point in time.