The Default Effect

question 1

Multiple Choice

The default effect

• A) Refers to the observation that people tend to value something more highly when they own it than when they don't
• B) Refers to the observation that people tend to value something more highly when they don't own it than when they do
• C) Refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default
• D) Refers to the observation that people do not have a strong attachment to the status quo

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Definitions:

Desired Results

The intended or sought-after outcomes of an action, plan, or strategy.

Management Function

Refers to the primary roles and practices that managers undertake to achieve organizational goals, including planning, organizing, leading, and controlling.

Motivating

The act of encouraging someone's excitement or eagerness to engage in an activity.

Inspiring

The act of motivating and stimulating others to engage, envision, or perform towards achieving particular goals or ideals with enthusiasm.