Heuristics Exert a Strong Influence on Our Thinking in Large

question 43

Multiple Choice

Heuristics exert a strong influence on our thinking in large measure because ________.

• A)they rely on our internal personal biases and unknown prejudices
• B)they are effortful processes that require an expenditure of mental energy
• C)they activate critical brain structures such as the amygdala
• D)they allow us to process more information than would otherwise be considered
• E)they reduce the mental effort needed to make judgments and decisions

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Definitions:

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

High Upfront Costs

High Upfront Costs are significant initial expenses incurred before a project, investment, or purchase begins to generate any revenues or savings, often acting as a barrier to entry.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors influence the economic decisions of individuals and institutions.

Neoclassical Economics

An economic thought framework that emphasizes the determination of goods, outputs, and income distributions in markets through supply and demand.