The Easier It Is for People to Remember an Instance

question 131

Multiple Choice

The easier it is for people to remember an instance in which they were betrayed by a friend,the more they expect such an event to recur.This best illustrates the impact of

• A) framing.
• B) confirmation bias.
• C) an algorithm.
• D) the availability heuristic.

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Definitions:

Distribution of Assets

The process of allocating assets among beneficiaries, heirs, or other designated parties, usually following a legal procedure like a will or bankruptcy.

Administrative Expenses

Costs associated with the general operation of a business, such as salaries, rent, and utilities, not directly tied to producing goods or services.

Financial Distress Costs

Costs associated with a company's financial trouble leading to bankruptcy or restructuring, including legal fees, loss of goodwill, and disruption of operations.

Corporate Default

The failure of a company to fulfill its financial obligations, such as missing a debt payment or failing to repay a loan as agreed.