Which of the Following Scenarios Exemplifies Extinction

question 79

Multiple Choice

Which of the following scenarios exemplifies extinction?

• A)Alexis is a former cocaine user.Now that she no longer uses cocaine,her hands no longer shake and her heart no longer pounds when she hears a car pull into her drive,like her dealer used to do in his car.
• B)Alexis uses cocaine.She no longer feels quite the same rush as she did when she first started using.
• C)Alexis is a former cocaine user in recovery.After a relapse,though,her hands shake and her heart pounds when she hears a car pull into her drive,like her dealer used to do in his car.
• D)Alexis uses cocaine.She finds that she is slowly losing her sense of smell.

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Definitions:

"Bird in the Hand" Theory

The investment theory suggesting that investors prefer the certainty of dividend payments over potential capital gains because of the perceived lower risk.

Clientele Effect

The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.

Dividends

Payments made to shareholders out of a company's profits.

Steady Source

A consistent and reliable means of obtaining something, such as income or information.