You Are Looking to Buy a New Smart Phone and Have

question 175

Multiple Choice

You are looking to buy a new smart phone and have come to the conclusion that an iPhone is probably the best. So when you see an ad in a magazine for a Samsung, you just turn the page an ignore it. This probably reflects the operation of

• A) confirmation bias
• B) mental shortcuts
• C) critical thinking
• D) gathering empirical evidence
• E) a self-correcting bias

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Definitions:

Elastic Supply

The situation where the quantiry supplied of a good is sensitive to changes in its price.

Subsidy Benefit

Financial assistance granted by the government or a public body to support businesses, industries, or individuals, leading to lower costs or more favorable conditions.

Marginal Tax Rate

The rate at which the last dollar of taxpayers' income is taxed, indicating how much tax will be paid on an additional dollar of income.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity for a given period.