In Most Situations We Rely on Stereotypes and Categorical Thinking

question 25

Multiple Choice

In most situations we rely on stereotypes and categorical thinking rather than trying to derive new information. The authors call this:

• A) the principle of least effort.
• B) lazy thinking syndrome.
• C) closed circuit thinking syndrome.
• D) thinking inside the box.
• E) the principle of least return.

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, considering interest or capital gains.

Purchasing Power

The amount of goods or services that one unit of money can buy, reflecting the economic value of currency.

Interest Rate

The fee that a borrower must pay to a lender for borrowing assets, typically represented as a percentage of the principal amount.

Time-Value

The principle stating that money in hand today is more valuable than the identical amount received later, owing to its capacity to generate earnings.