Our Use of the Availability Heuristic Highlights a Basic Principle

question 5

Multiple Choice

Our use of the availability heuristic highlights a basic principle of social thinking.This principle holds that:

• A)people are slow to deduce particular instances from a general truth.
• B)people are slow to infer general truth from a vivid instance.
• C)people are quick to deduce particular instances from a general truth.
• D)people are very accurate to explain the vivid instances based on general truth.

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Definitions:

Principal Portion

The part of a loan payment that reduces the outstanding balance owed on the loan.

Compounded Monthly

Interest calculation method where interest is added to the principal on a monthly basis.

Amortization Schedule

A detailed table of periodic loan payments, breaking down the amounts going towards principal and interest over the life of the loan.

Total Interest

The overall amount of interest paid on a loan or earned on an investment over a specific period.