-The Table Above Lists Six Points on the Production Possibilities

question 168

Multiple Choice

-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 26th car?

• A) 0.25 tons of grain
• B) 4 tons of grain
• C) 2 tons of grain
• D) 0.5 tons of grain

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Definitions:

Framing Effect

A cognitive bias where people react differently to a choice depending on how it is presented, or "framed," especially as a loss or gain.

Belief Perseverance

The psychological phenomenon where individuals maintain their convictions even when confronted with contrary evidence, showcasing the difficulty of changing deeply held beliefs.

Framing Effect

The cognitive bias where people's decisions are influenced by the way information is presented, rather than just the information itself.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how well something matches or represents a particular prototype.