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vladimir1956 [14]
3 years ago
7

In each scenario below, please label which mistake they made in regard to economic decision making. Alexander is heavily investe

d in the stock of Nortel, a telecommunications giant. However, Nortel has been in steady decline and despite the fact all signs point to the fact Nortel will likely go bankrupt, Alexander holds onto his stocks, unwilling to sell unless he makes back at least the money he invested into it. Jim is washing his laundry and as he checks his jean pockets, he finds an unexpected windfall of $50. Elated because it was $50 more than he had before, he decide splurge on a lobster and filet mignon dinner. Geneva is a researcher at Genentech, a biotech firm and faces decision paralysis every time a big question is posed to her. When her boss asks her what project she wants to work on, she says she is indifferent every time, so her boss just assigns her to a project. Tiffany lives in Alameda, CA. She recently got two job offers, one in Oakland and one in San Francisco. The San Francisco job pays $1000 more per year, so Tiffany accepts the job. However, she quickly realizes the travel time, which is an hour more each way. quickly becomes a burden. Steve is trying to diet. Each day he says the diet will begin today, but each time he eats a potato chip, he indulges in it. The next day, he promises his diet will really start, but the vicious cycle continues
Business
1 answer:
krek1111 [17]3 years ago
6 0

Answer:

a) Loss Aversion

b) Mental Accounting

c) Status Quo Bias

d) Misperceiving opportunity cost

e) Overconfidence

Explanation:

a) In Alexander's case, he is suffering from the Loss Aversion theory that is very prevalent in Economics where some people prefer not losing money as opposed to actually gaining money. Alexander does not want to lose the money he invested and so is holding on hoping to get back his money so he doesn't lose anything.

b) In Jim's case, he practices mental accounting. This is a situation where people group their various money related transactions in different groups in their mind and ascribe them different values. Jim did not attach enough value to the money he found though and so just decided to spend it.

c) Geneva faces Status quo bias which is a situation where one prefers things the way they are. She freezes every time big question is asked of her and just let's things continue the way they are every time. She faces the Status Quo Bias.

d) Tiffany misperceived her Opportunity Cost when she failed to calculate the transport cost associated with the job she took. Had she not done so, she would have factored in the correct Opportunity Cost and seen that it might be better to take the job closer to her.

e) Steve is overconfident in his ability to start a diet. He has been failing at doing so and yet believes he can do so. It is important therefore that he finds something else to spur him ti start the diet because his confidence in doing it himself is clearly a farce and does not match what he actually can do.

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Anna-Marie senses that one of her employees feels excluded from the rest of the group. She is surprised by this, as she believes
cricket20 [7]

The best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.

Talking to the employee will reveal if they are out-group members and enable Anna-Marie to understand their views.

<h3>Who is an out-group member?</h3>

An out-group member is an individual in an organization who does not identify themselves as part of the group or unit.

An out-group member does not pursue the same goals as other group members and most times feels excluded from the group.

<h3>Answer Options:</h3>

A- She should talk to the employee to understand their perspective.

B- She should redistribute the company policy describing inclusion expectations.

C- No action is required; she is already acting ethically.

D- She should start documenting her efforts at inclusion.

Thus, the best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.

Learn more about out-group members at brainly.com/question/7548841

3 0
1 year ago
Irving spent the day shopping and made the following purchases: Item Cost ($) Novel 8.75 Shirt 21.66 Lunch 9.13 Potted plant 16.
yan [13]

Answer:

The answer is: $151.49

Explanation:

To determine how much money did Irvine have at the beginning of the day we just add all his expenses to his account balance at the end of the day:

= $95.06 + $8.75 (novel) + $21.66 (shirt) + $9.13 (lunch) + $16.89 (potted plant)

= $151.49 was the amount of money Irvine had at the beginning of the day.

8 0
3 years ago
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Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?a. Take steps to reduce
k0ka [10]

Answer: a. Take steps to reduce the DSO

Explanation:

Cash conversion cycle simply measures the length by which there will be deprivation of cash for a firm when the firm increases its investment in its inventory so that customer sales can be expanded

The actions that Reece Windows should take if it wants to reduce its cash conversion cycle is to take steps to reduce the DSO. This will help in reducing cash conversion cycle.

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2 years ago
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Katena32 [7]

Answer:

The answer is below

Explanation:

The difference between basic wants and secondary wants​ lies in how much humans want them in terms of survival.

Therefore, the two of the main differences between Basic wants and Secondary wants are:

1. Basic wants are wants of humans that are meant for survival or cannot do without while secondary wants are not meant for human survival or humans can do without.

2. Without Basic wants such as food, shelter, and oxygen, humans will die off quickly, while humans can easily survive without secondary wants such as entertainment activities.

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