If a Battleship Sinks in a Canal Lock, the Water

question 49

Multiple Choice

If a battleship sinks in a canal lock, the water level in the lock will

• A) fall.
• B) rise.
• C) remain unchanged.

Understand the concept of the endowment effect in behavioral economics.

Recognize how prospect theory explains human behavior towards risks and rewards.

Identify the influence of anchoring on decision-making.

Grasp the key principles of behavioral economics related to gains, losses, and status quo.

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Definitions:

Dorsal Stream

The visual processing pathway in the human brain that is responsible for the perception of motion, spatial orientation, and control of eye movements and hand-eye coordination.

Trichromatic Theory

A theory of color vision proposing that the eye perceives color through the relative rates of response by three types of cones, each sensitive to different wavelengths of light.

Colour Vision

The ability of the eye to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Estimate

A rough calculation or judgement of the value, number, quantity, or extent of something.