Public Finance

question 24

Multiple Choice

Public finance

• A)only works for local and provincial governments.
• B)develops principles for understanding the government's taxing and spending activities.
• C)is not like public economics.
• D)all of these answer options are correct.

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Definitions:

Sunk Cost Effect

The phenomenon where a person continues an endeavor because of previously invested resources (time, money, or effort), despite potential losses.

Availability Heuristic

The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Self-Serving Bias

A common cognitive bias where individuals attribute their successes to personal factors while attributing their failures to external factors.