When People Judge the Probability That an Object or Event

question 20

Multiple Choice

When people judge the probability that an object or event (A) belongs to a class or process (B) , they will often apply which heuristic?

• A) Contagion
• B) Peak-end
• C) Representativeness
• D) Anchoring
• E) Fluency

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Definitions:

Good Y

A generic term used in economic models to represent a particular product or service in the market.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set amount of inputs, highlighting concepts of opportunity cost, efficiency, and trade-offs.

Idle Resources

Resources in an economy that are not being fully utilized, often leading to inefficiency.

Output

The total amount of goods and services produced by an economy or a production process.