One Major Consequence of the Planning Fallacy Is That

question 266

Multiple Choice

One major consequence of the planning fallacy is that

• A)people may spend more resources to insure themselves against rare events, but leave themselves uninsured against more common events.
• B)someone could persist in pursuing a failed policy despite overwhelming evidence of the failure.
• C)major business projects may create bottlenecks in the organization because they are not completed as scheduled.
• D)some people may wrongly believe in their forecasting ability to predict future outcomes of risky investments.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Promisee

The party in a contract who is to receive the benefit or performance specified in the agreement.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Offer

A proposal by one party to another to enter into a legally binding contract with specific terms.