Julie's Mother Died of Lung Cancer but Julie Is Not

question 17

Multiple Choice

Julie's mother died of lung cancer but Julie is not fearful of cigarettes, and she shocked herself accidentally on a faulty electrical outlet but is not fearful of outlets. However, she has phobias of both snakes and spiders, despite never having been harmed by either. A likely reason for this is that __________.

• A) people do not prepare themselves properly when faced with something that frightens them
• B) evolution favors those creatures with a built-in fear of dangerous things, like snakes or spiders
• C) society prepares people to be afraid of dangerous things like snakes
• D) none of the above

Calculate and record unrealized gains and losses for investments classified as trading purposes.

Know the processes for recording the receipt and amortization of interest from bond investments.

Understand the fundamental characteristics and rights of preferred and common shares.

Recognize the separation and autonomy of a corporation as an entity distinct from its shareholders.

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Definitions:

Constant Returns to Scale

A situation in production where increasing the inputs exactly proportionally results in an equivalent increase in output.

Economies of Scale

The financial benefits gained by businesses as a result of their operation size, wherein the expense for each unit produced typically drops as the scale expands.

Average Total Costs

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where the average cost per unit decreases as production scales up.