Research on the Anchoring and Adjustment Heuristic Indicates That ____

question 113

Multiple Choice

Research on the anchoring and adjustment heuristic indicates that ____.

• A) people usually do not "adjust" enough away from their anchors
• B) people usually "adjust" too much away from their anchors
• C) people will not engage in this heuristic if they know that the anchors are arbitrary
• D) people will not engage in this heuristic if they know that it can lead to faulty decisions

---

Definitions:

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine the best option through weighing the cost against the benefits.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Pollution Abatement

Measures and actions taken to reduce, control, or eliminate pollution from a specific source.

Marginal Benefit

The enhancement in satisfaction or utility that comes from acquiring or making an additional unit of a product or service.