The Low-Energy Mental Shortcuts, or Heuristics, That the Human Brain

question 136

True/False

The low-energy mental shortcuts, or heuristics, that the human brain commonly employs is one major reason for the systematic errors in decision making that people make, which is the focus of behavioral economics.

Comprehend how the production possibilities frontier (PPF) illustrates efficiency, trade-offs, and opportunity costs.

Identify the causes and implications of shifts and shapes in the production possibilities frontier.

Distinguish between efficient, inefficient, and infeasible production levels.

Understand the impact of unemployment and economic growth on an economy's production capabilities.

---

Definitions:

Pupil

The black circular opening in the center of the iris of the eye, which regulates the amount of light that enters.

Accommodation

The process of adjusting thoughts or schemas to incorporate new information or experiences.

Lens

A transparent optical device used to converge or diverge transmitted light and to form images.

Visual Acuity

The clarity or sharpness of vision, a measure of how well a person can see details at a distance.