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Jake Is a Recovering Alcoholic

question 156

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Jake is a recovering alcoholic. He has not had a drink of alcohol in over 6 months. One of the strategies that Jake has used to remain abstinent has been to stay away from bars, avoid parties in which alcohol is served, and even find new friends who do not drink alcohol. Jake is overcoming the short-term reinforcement he associated with alcohol use by using which strategy?


Definitions:

Residual Income

The amount of income that exceeds the minimum rate of return expected on investments or capital.

Investment Opportunity

A potential financial venture, property, or stock that could generate a favorable return.

Residual Income

The income that remains after deducting all operation and investment costs, including a minimum desired return on investment.

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular project or investment.

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