In a Psychology Study, People Are Asked Which Is More

question 73

Multiple Choice

In a psychology study, people are asked which is more likely: an earthquake that kills 100,000 people or an earthquake in California that kills 100,000 people.Far more people said that the earthquake in California is more likely, even though there are clearly more earthquakes than there are earthquakes in California.This way of thinking is an example of the

• A)confirmation bias.
• B)framing effect.
• C)representativeness heuristic.
• D)availability heuristic.

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Definitions:

Marginal Cost

The cost required to produce a subsequent unit of a product or service.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as production volume changes.

Short-run Supply

The total quantity of goods or services that producers are willing and able to sell at a given price in a short period.

Economic Profit

Economic profit is the profit from producing goods and services while factoring in the full costs of its resources, including opportunity costs.