The ____ Heuristic Says That We Have a Tendency to Assume

question 173

Multiple Choice

The ____ heuristic says that we have a tendency to assume that an object or event belongs in a particular category based on how similar it is to the typical prototype of that category.

• A) algorithm
• B) availability
• C) exemplar
• D) representative

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Definitions:

Sale Price

The amount of money for which a product, asset, or service is sold in the marketplace.

Revaluation Model

An accounting method allowing for the increase or decrease of an asset's value on the balance sheet, based on current fair values.

Fair Value

The price at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

Gain on Sale

The financial profit gained from selling an asset for more than its book value.