Suppose That You Hear About a Friend Who Graduated from Your

question 13

Multiple Choice

Suppose that you hear about a friend who graduated from your college in performing arts. In addition, suppose that you judge that she is more likely to be selling insurance and active in community theater than she is to be selling insurance. You have committed

• A) the anchoring and adjustment heuristic.
• B) the crystal-ball technique.
• C) the belief-bias effect.
• D) the conjunction fallacy.

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Definitions:

Labor Force

The total number of people employed and actively seeking employment within an economy.

War Theory

A subset of military theory that explores the philosophies, ethics, and logistics of warfare and conflict.

Expansion Phase

A period in the business cycle during which the economy grows and unemployment decreases.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, organized into two opposing military alliances: the Allies and the Axis.