A Loose Screw on the Glove Compartment Causes It to Drop

question 23

Multiple Choice

A loose screw on the glove compartment causes it to drop down while Ben drives,but he keeps forgetting to take a screwdriver out to the car to fix it.When the compartment falls open again,he reaches into his pocket for a dime to use to tighten the screw.What problem-solving difficulty did Ben overcome?

• A)belief perseverance
• B)functional fixedness
• C)conjunction fallacy
• D)the representative heuristic

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Definitions:

Returns to Scale

The rate at which output increases as inputs are increased proportionately.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at different prices.

Deadweight Loss

A loss of economic efficiency that occurs when equilibrium for a good or service is not achieved or is not achievable.