How Do Ratings Agencies Earn Income

question 41

Essay

How do ratings agencies earn income?

Describe the halo effect and its influence on perception, including its relationship with the similar-to-me effect.

Understand the principles of Kelley's attribution/covariation model and its application in interpreting others' behaviors.

Understand the factors influencing false confessions and their implications in the legal context.

Grasp the dynamics of socialization of antisocial behavior and its long-term consequences.

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Definitions:

Efficient Use

The optimization of resources or practices to achieve a goal with minimal waste and maximal effectiveness.

Demand Curve

A visual chart that illustrates how the demand for a product varies with its price, indicating the amount shoppers are willing to buy at different price levels.

Replacement Costs

The cost to replace an asset at its current value without deduction for depreciation.

Repair Costs

The expenses incurred in fixing or maintaining equipment, machinery, or buildings to ensure their proper functioning and longevity.