Jon Read an Advertisement in the College Newspaper That Said

question 20

Multiple Choice

Jon read an advertisement in the college newspaper that said a college student was looking for a roommate to share an apartment. The ad encouraged students who liked to cook and keep a tidy room. Jon thought, "I'll bet the student is looking not just for any college student, but rather for a female college student. I'm not even going to check this one out." Jon's informal estimate shows he may be committing which thinking error?

• A) Confirmation bias
• B) Conjunction fallacy
• C) Illusory correlation
• D) Arguing from possibility or ignorance

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Definitions:

Monitoring Employees

The process of overseeing employees' work activities and performance, often through the use of technology or other means.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another.

Prevalent

Widespread in a particular area at a particular time; commonly occurring or accepted.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.