The Term "System 1" Is Used to Describe How Our

question 37

Multiple Choice

The term "System 1" is used to describe how our brains make ethical decisions in a:

• A) Rapid, intuitive manner
• B) Rigorously analytical manner
• C) Dual-processing mode that utilizes all available mental resources
• D) Single-processing mode that is deliberative and meticulous

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Definitions:

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.

Interest-Rate Cost-Of-Funds

The cost incurred by financial institutions to raise funds that they can then lend to customers, influenced by prevailing interest rates.

Market Interest Rates

The prevailing rate at which borrowers and lenders agree to engage in transactions of debt securities in the financial markets.

Creative Destruction

A concept in economics which suggests that new innovations destroy old industries and methods, leading to new sectors and opportunities for growth.