Gerard Yoder Believes That Every Time He Picks Up His

question 36

Multiple Choice

Gerard Yoder believes that every time he picks up his daughter, Penny, from school, it brings him good luck. The last time he picked her up from school, he won a lottery ticket. Today, after he received her from school, he reached his office and found out that he has been promoted. Which of the following concepts best describes Yoder's belief?

• A) affect intensity
• B) bandwagon effect
• C) illusory superiority
• D) positive bias
• E) illusory correlation

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Definitions:

Capital Asset

A Capital Asset is a significant piece of property such as investments, real estate, and personal items that is not easily sold in the regular course of a business's operations.

Section 1231

A tax term relating to the classification of property that includes depreciable property and real property (e.g., buildings and equipment) used in a trade or business and held for more than one year. gains from the sale of Section 1231 property can be taxed at more favorable capital gains rates rather than ordinary income rates.

Ordinary Loss

A loss resulting from regular business operations that is fully deductible against ordinary income on a taxpayer's tax return.

Sole Proprietor

An individual who owns and operates a business alone, bearing sole responsibility for its operations and liabilities.