Steve Went to an Astrologer, Who Predicted He Would Have

question 26

Multiple Choice

Steve went to an astrologer, who predicted he would have a business success in the near future. The next day, Steve was offered a promotion at work. Caitlin said that she knew of a well-controlled study that tested the predictions of astrologers and found they could not predict future events at better than chance levels. Which evidence should people trust MOST in drawing a conclusion about astrology?

• A) The scientific study, because it is based on more objective, systematic observations that can be replicated.
• B) The scientific study, because scientific research is never subject to personal bias and does not make incorrect predictions.
• C) The personal experience, because it is more real and compelling.
• D) The personal experience, because science cannot really study unusual phenomena such as predicting the future.

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Definitions:

Barriers To Entry

Economic or legislative obstacles that prevent new competitors from easily entering an industry or area of business.

Monopoly Power

The degree of power held by a singular entity to control prices or exclude competition within a market.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market more efficiently than multiple firms due to high fixed or startup costs.

Economies Of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units of production, reducing the cost per unit.