Don Is Convinced That It Would Be Best If the U.S

question 292

Multiple Choice

Don is convinced that it would be best if the U.S. was on a gold standard. He enthusiastically reads any editorials or articles that confirm his view. He frequently dismisses editorials and articles that argue against the gold standard because he presumes they are flawed or written by "crackpots." Don's behavior is an example of which of the following systematic mistakes that people make?

• A) people are overconfident
• B) people give too much weight to a small number of vivid observations
• C) people are reluctant to change their minds
• D) All of the above are correct.

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Definitions:

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a certain period, often used to assess efficiency.

Internal Users

Individuals within an organization who use financial information to make decisions, including managers, employees, and internal auditors.

Financial Information

Data regarding the financial status, operations, and cash flows of a business, useful for decision-making purposes.

Operating Efficiency

A measure of how well a company utilizes its resources to generate profits, often indicated by the ratio of output produced to input used.