You Hear a Small Group of People Talking About a Movie

question 46

Multiple Choice

You hear a small group of people talking about a movie at a party.Everyone in the group seems to have liked the movie.You assume the movie must be good.This assumption is based on what bias?

• A)The law of large numbers
• B)The representativeness heuristic
• C)Anchoring-and-adjustment heuristic
• D)The compromise effect
• E)The base rate effect

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Definitions:

Patent Rights

Legal rights granted to an inventor or assignee to exclusively make, use, or sell an invention for a certain period of time.

Barrier to Entry

Factors that make it difficult for new firms to enter an industry, including high startup costs, stringent regulations, and established brand loyalty.

Homogeneous Product

A good or service that is considered identical or uniform across different sellers, making it difficult to distinguish based on attributes other than price.

Gasoline

A volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.