Tim Tells You That the Best Way to Make Friends

question 14

Multiple Choice

Tim tells you that the best way to make friends is by opening the conversation with a joke. He can easily recall all the friends he met by telling a joke and also the times he opened with chitchat and didn't befriend the person. If you were concerned that Tim was making the blind spot bias, what would you ask him?

• A)What about the times you opened with a joke and didn't become friends with the person?
• B)Do you think the times you made friends by telling jokes might come more easily to mind?
• C)Have you tested this conclusion systematically?
• D)Did you go into conversations where you opened with jokes thinking that you would make friends?

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Definitions:

Deadweight Loss

An economic inefficiency resulting from the failure to achieve or the impossibility of achieving equilibrium in the market for a particular good or service.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to provide.

Tax Revenue

The earnings obtained by governments from tax collection.

Consumer Surplus

The contrast between what consumers intend to pay for an item or service and the real cost they bear.