Joe Takes on His Sister's View That All People from Cape

question 116

Multiple Choice

Joe takes on his sister's view that all people from Cape Town's 'Southern Suburbs' are snobs.Later, Joe learns that his sister's opinion was based on the fact that her boyfriend from a southern suburb recently dumped her.Yet Joe persists in his belief that people from the Southern Suburbs are snobby.This best illustrates the ____ effect.

• A)theory perseverance
• B)availability heuristic
• C)false consensus
• D)false uniqueness

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Definitions:

Protection-As-A-Bargaining-Chip

A strategic use of trade barriers or policies by a country to gain concessions or favorable terms from other countries.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount received by them when the good is sold at the market price.

Comparative Advantage

The capacity of a person or collective to conduct a specific economic operation more effectively compared to another.