1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
QveST [7]
3 years ago
12

________ refers to how people make decisions in a lottery or with uncertainty. People do not generally make expected value decis

ions. They tend to overweight unlikely outcomes and underweight more likely events.a. Heuristicsb. Rational decision makingc. Prospect theory
Business
1 answer:
allsm [11]3 years ago
4 0

Answer:

The correct answer is c. Prospect theory.

Explanation:

Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.

Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.

You might be interested in
Capital assets used by an enterprise fund should be accounted for in the a. Business-type activities journal but no depreciation
Diano4ka-milaya [45]

Answer:

b. Enterprise fund and depreciation on the capital assets should be recorded.

Explanation:

Cash flow can be defined as the net amount of cash and cash- equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

Capital assets used by an enterprise fund should be accounted for in the enterprise fund and depreciation on the capital assets should be recorded.

Additionally, depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.

4 0
3 years ago
According to the law of supply, when the price of a good increase the quantity supplied is __________.
xeze [42]

Ans d

Explanation:

i believe

4 0
3 years ago
Legal forces are important external forces that international managers need to understand. They are developed at the national le
Fantom [35]

Answer:

1. Per se application  - US Competition law

Justification: It is a provision of US competition law

2. Misuse of activity - EU Competition law

Justification: It is a provision of EU competition law

3. Extraterritoriality - US and EU

Justification: It is a provision of US and EU antitrust and competition law

4. Trade obstacle, non-tariff - France

Justification: These are considered to be part of the France trade system

5. Strict liability - U.S. Tort Law

Justification: It is part of the U.S. Tort Law and depends on intent to harm liability

6. Punitive damages - U.S. Product Liability Law

Justification: It is a provision of U.S. Product Liability Law

5 0
2 years ago
A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company
JulijaS [17]

Answer:

Net income of the company accounted for $400,000

Explanation:

Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

The net income or loss of the company accounted for is computed as:

Net Income or Loss = Net Income - Research and Development cost

where

Net Income amounts to $3,400,000

Research and Development cost amounts to $3,000,000

So, putting the values above:

Net Income or loss = $3,400,000 - $3,000,000

Net Income  = $400,000

7 0
3 years ago
Lack hshshahababahjjss<br>​
Illusion [34]

Answer:

wjwksjsbdjdhdhsjdns

Explanation:

Human resources development is important because it is an investment in one's employees that will ultimately result in a stronger and more effectiv

e nmmnejeej

amksusshhvsu

5 0
2 years ago
Read 2 more answers
Other questions:
  • Which transaction increases​ stockholders' equity? A. payment of operating expenses B. expenses greater than revenues for the pe
    13·1 answer
  • Which of the following are examples of debt overhang? Which examples are likely to lead to a cutback in spending?
    14·1 answer
  • Clarissa wants to fund a growing perpetuity that will pay $ 4 comma 000 per year to a local​ museum, starting next year. She wan
    6·1 answer
  • Access Organics, Inc., hired Andy Hernandez to sell organic produce. Later, Hernandez signed an agreement not to compete with Ac
    10·2 answers
  • Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle? a. Revenue. b.
    13·1 answer
  • Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginnin
    12·1 answer
  • Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home &amp; Yard Hardware stores. Ian bu
    10·1 answer
  • Does anyone else like tyler, the creator or is it just me ..?
    14·1 answer
  • WaterwayCompany has the following equivalent units of production for July: materials 15460 and conversion 11540. Production cost
    5·1 answer
  • If the cross-price elasticity of two goods is negative, then the two goods are a. inferior goods. b. normal goods. c. complement
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!