"If It Walks Like a Duck and Quacks Like a Duck

question 2

Multiple Choice

"If it walks like a duck and quacks like a duck, it must be a duck," the adage goes. This expression best captures the essence of the __________.

• A) fundamental attribution error
• B) representativeness heuristic
• C) availability heuristic
• D) correspondence heuristic

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Definitions:

Optimal Allocation

The most efficient distribution of resources and services, maximizing the benefit from their use.

External Costs

Costs not reflected in the market price of goods or services, borne by a third party or society at large.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can significantly influence prices or market conditions.

Government Intervention

The involvement of government in the market, aimed at correcting market failures, redistributing income, or achieving societal goals.