Elna Prefers to Drive Instead of Flying Because She Is

question 78

Multiple Choice

Elna prefers to drive instead of flying because she is afraid that the plane might crash.However, she is not worried about the possibility of a car crash.Elna is falling victim to

• A)affect-as-information reasoning.
• B)the representativeness heuristic.
• C)loss aversion.
• D)the availability heuristic.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a product and the amount of it that consumers are willing to purchase at various prices.

Perfectly Competitive

A perfectly competitive market is one where there are many sellers and buyers, homogeneous products, and no barriers to entry or exit, resulting in market prices determined by supply and demand.

Generic Pharmaceuticals

Medications marketed without brand names and often sold at lower prices than their branded counterparts, but contain the same active ingredients.

Smart Phones

Advanced mobile phones with extensive computing abilities, including internet access, app functionality, and touchscreen interface.