Which Term Refers to the Tendency to Take Whatever Course

question 74

Multiple Choice

Which term refers to the tendency to take whatever course of action does not require you to do anything (also called the default option) ?

• A) omission bias
• B) status quo bias
• C) certainty effect
• D) risk aversion

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Definitions:

Straight-Line Basis

A method of calculating depreciation or amortization that spreads the asset's cost evenly across its useful life.

Accumulated Depreciation

The total amount of an asset's cost that has been expensed over time due to wear and tear, obsolescence, or age.

Residual Value

The projected sum an asset will fetch at the time of sale, once it has surpassed its lifespan.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.