Hahn and Oaksford (2007) Suggest Everyday Rationality Is Founded on Uncertain

question 4

Multiple Choice

Hahn and Oaksford (2007) suggest everyday rationality is founded on uncertain rather than certain reasoning, and so ______ provides a better starting point for an account of human reasoning than logic

• A) concreteness
• B) uncertainty
• C) mental models
• D) relevance
• E) probability

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Definitions:

Positive Externality

A benefit obtained without compensation by third parties from the production or consumption of sellers or buyers. Example: A beekeeper benefits when a neighboring farmer plants clover. Also known as an external benefit or a spillover benefit.

Spillover Benefit

A positive effect experienced by bystanders or other parties not directly involved in the production or consumption of a good or service.

External Costs

Costs incurred by a third party as a result of an economic transaction that are not reflected in the transaction's price.

Product Differentiation

A strategy in which one firm’s product is distinguished from competing products by means of its design, related services, quality, location, or other attributes (except price).