Which Statement Is an Example of a Global Trend

question 95

Multiple Choice

Which statement is an example of a global trend?

• A)The Federal Reserve announces that it will decrease the interest rate it charges banks.
• B)Congress passes legislation that increases the tax rates on corporations.
• C)A new computer chip is announced that will allow for miniaturization of many electronic devices.
• D)The E.U.declares an increase in tariffs on all agricultural goods.

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Definitions:

Representativeness Heuristic

A cognitive bias in decision-making where the likelihood of an event is estimated based on how much it resembles existing stereotypes or patterns.

Availability Heuristic

A cognitive bias where people overestimate the importance or frequency of information that is readily available to them.

Anchoring and Adjustment Heuristic

A mental shortcut that influences the way people intuitively assess probabilities and make decisions based on initial information.

Escalation of Commitment

The phenomenon of investing increasingly more resources into a failing course of action due to cognitive biases and sunk costs.