Assume a Scattergraph Shows $100 at No Activity and $1,500

question 119

Multiple Choice

Assume a scattergraph shows $100 at no activity and $1,500 at an activity level of 1,000

• A)$2.00.
• B)$1.40.
• C)$2.50.
• D)$5.00.

Identify and explain key concepts in social psychology such as attributions, the primacy effect, and the self-serving bias.

Differentiate between dispositional and situational attributions.

Analyze the effects of social influence on behavior, thoughts, and feelings.

Understand the process of impression formation and its effects.

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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.