Which of the Following Scenarios Explains Why Uncertainty Can Lead

question 64

Multiple Choice

Which of the following scenarios explains why uncertainty can lead to increased volatility in economic fluctuations from investment?

• A) You are not sure whether your fiancé will retain his job in the uncertain economic environment,so you decide not to purchase a home with him.
• B) Your firm starts laying off workers and you are not sure whether you will keep your job,so you reduce your spending by half.
• C) Your friend warns you that your bank is about to collapse,so you withdraw your savings from that bank.
• D) You anticipate a recession may be coming,so you reduce the number of hours you work.

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Definitions:

Maslow's Theory

A psychological theory proposed by Abraham Maslow that suggests human beings are motivated by a hierarchy of needs, starting from basic physiological needs to self-actualization.

Characteristics of Self-Actualizers

Traits and behaviors of individuals who have achieved self-actualization, including autonomy, creativity, and a deep appreciation of reality.

Self-Determination Theory

A psychological theory of human motivation focusing on the importance of autonomy, competence, and relatedness in fostering volitional actions.

Hierarchy of Needs

A theory proposed by Abraham Maslow outlining a five-tier model of human needs, from basic physiological needs to self-actualization, each level needing to be fulfilled before moving to the next.