If a Business Has Total Gross Profit of $14,720 and Total

question 17

Multiple Choice

If a business has total gross profit of $14,720 and total operating costs of $11,500, what is its net profit?

• A) $3,000
• B) $3,220
• C) $1,150
• D) $0

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Definitions:

Anchoring

Anchoring is a psychological phenomenon wherein an individual relies too heavily on an initial piece of information, or 'anchor,' to make subsequent decisions.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, which help in making decisions, forming judgments, or solving problems.

Error-Free Decisions

Decisions made without mistakes, achieved through careful analysis, planning, and consideration of all relevant information.

Recognition Heuristics

A cognitive shortcut where a decision is made based on the recognition or familiarity of an option rather than on a detailed comparison or analysis.