Johnson-Laird Argued That __________

question 34

Multiple Choice

Johnson-Laird argued that __________.

• A)Humans cannot use formal logic
• B)Humans use mental models of the described state of affairs
• C)Human decision making is intrinsically connected to language skills
• D)Human decision making relies on explicit hypothesis testing

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Definitions:

Retaining Earnings

Profits that a company reinvests in itself instead of paying out to shareholders as dividends.

Flotation Costs

Those costs occurring when a company issues a new security, including fees to an investment banker and legal fees.

New Common Shares

Issuance of additional shares of a company's stock, which can dilute existing shareholders' equity but raise new capital for the company.

Flotation Cost

The total costs that a company faces when it issues new securities, including underwriting fees, legal fees, and registration fees.