________ Refers to the Tendency of People to Draw a General

question 42

Multiple Choice

________ refers to the tendency of people to draw a general impression about an individual on the basis of a single characteristic.

• A) Confirmation bias
• B) Self-serving bias
• C) Randomness error
• D) Halo effect
• E) Hindsight bias

Familiarize with the concept of economic profits versus accounting profits.

Assess the impact of usury laws on the availability and cost of loanable funds.

Understand the role of interest rates in investment decisions by individual firms.

Recognize the ethical and religious viewpoints on lending practices.

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Definitions:

Esteem Needs

Psychological requirements for respect, self-esteem, and recognition, as part of Maslow's hierarchy of needs.

Affiliation Needs

The human desire to belong to a group, be accepted, and maintain relationships with others, driving social interactions.

Security Needs

Basic human requirements for safety and stability, including physical safety, employment, resources, health, and property, as essential for well-being.

Physiological Needs

Basic human necessities required for survival, such as food, water, shelter, and sleep; the foundational level in Maslow's hierarchy of needs.