Magical Thinking ________

question 27

Multiple Choice

Magical thinking ________.

• A)makes compelling assumptions that are not completely rational
• B)is the end result of using heuristics
• C)can be caused by inappropriate priming
• D)makes rational assumptions appear to be compelling
• E)is governed by the laws of physics

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Definitions:

Perfect Income Equality

A hypothetical scenario where every individual or household in a society earns exactly the same income, eliminating any income disparity.

Lorenz Curve

A graphical representation of the distribution of income or of wealth within a population, highlighting inequalities.

Gini Ratio

An indicator of how income is distributed across a population, varying from 0 for total equality to 1 for absolute inequality.

Income Inequality

The disparity in income distribution across a group, causing variations in wealth and standards of living.