Prime Minister Bigego Is Running for Re-Election Against Finance Minister

question 50

Multiple Choice

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. What can you conclude?

• A) Both of them could be telling the truth if the labour-force participation rate and the labour force both grew.
• B) Both of them could be telling the truth if the labour-force participation rate and the labour force both fell.
• C) Both of them could be telling the truth if the labour force grew slower than employment.
• D) Both of them could be telling the truth if the labour force grew faster than employment.

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Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.

Halo Effect

A cognitive bias in which the perception of one positive characteristic of a person influences the overall perception of them as favorable.

Phi Phenomenon

An optical illusion of perceived motion created by the rapid succession of images or objects.

Recency Effect

The tendency to remember the most recently presented information best, compared to earlier information.