One Major Consequence of the Availability Heuristic Is That

question 42

Multiple Choice

One major consequence of the availability heuristic is that

• A)people may spend more resources to insure themselves against rare events, but leave themselves uninsured against more common events.
• B)someone could persist in pursuing a failed policy despite overwhelming evidence of the failure.
• C)bad decisions can be made because people will act without pausing to see whether their intuition is correct or not.
• D)some people may wrongly believe in their forecasting ability to predict future outcomes of risky investments.

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Definitions:

Lose Touch

The dwindling or loss of contact and communication with someone over time.

Policies

Guidelines or principles adopted by an organization or government to direct decisions and achieve rational outcomes.

Authoritarian

A governing system or leadership style characterized by strong central power and limited political freedoms.

Democratic

Pertaining to a system of government by the whole population or all the eligible members of a state, typically through elected representatives.