Although There Is a High Rate of Failure for Starting

question 428

Multiple Choice

Although there is a high rate of failure for starting new businesses, people still readily open new businesses every year. These decisions probably would not occur if people did not

• A)ignore the base rate.
• B)use the representative heuristic.
• C)frame this event very broadly.
• D)use a random search strategy for making decisions.

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Definitions:

Foreign Aid

Financial or material assistance given by one country to another for relief, development projects, or economic stabilization.

Social Security Tax

A tax imposed on employers and employees alike to finance the Social Security program, offering benefits for retirement, disability, and survivors.

Personal Income Tax

A tax that individuals pay on their earnings to the government, usually structured in progressive brackets.

Internet Tax Freedom Act

A U.S. law enacted in 1998 that bars federal, state, and local governments from taxing Internet access and imposing discriminatory internet-only taxes such as bit taxes, bandwidth taxes, and email taxes.