Which Heuristic Involves Forming Predictions Based on the Ease with Which

question 4

Multiple Choice

Which heuristic involves forming predictions based on the ease with which a situation can be imagined?

• A)Representativeness heuristic
• B)Availability heuristic
• C)Simulation heuristic
• D)Framing effect
• E)Anchoring-and-adjustment heuristic

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Definitions:

Time Preference

An individual's preference for receiving goods or services sooner rather than later.

Capital Goods

Long-term physical assets used in the production of goods or services, such as machinery and buildings.

Current Consumption

The total amount of goods and services consumed at the present time, as opposed to savings for future consumption.

Time Preference

The inclination of individuals to prefer goods and services sooner rather than later.