Faced with a Choice Between Two Pellets of Food Available

question 93

Multiple Choice

Faced with a choice between two pellets of food available in 20 seconds and three pellets of food available in 30 seconds, a rat will likely choose the _____ alternative. If 18 seconds are allowed to pass, such that the rat is faced with a choice between two pellets available in 2 seconds and three pellets available in 12 seconds, the rat will most likely choose the _____ alternative.

• A) smaller; larger
• B) larger; smaller
• C) larger; larger
• D) smaller; smaller

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Definitions:

Confirmatory Value

The aspect of financial information that helps users confirm or correct prior expectations.

Fair Value

The price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase price, not their current market value.

Economic Entity Assumption

The economic entity assumption is an accounting principle that treats a company as a separate entity from its owners for reporting purposes.