Your Friend Jane Is Trying to Decide If She Wants

question 58

Multiple Choice

Your friend Jane is trying to decide if she wants to go on a camping trip for the weekend.You know that Jane thinks camping is fun but you also remember that the last two times Jane went camping she got sick.Based on your knowledge of how the availability heuristic impacts judgments and decisions,what could you say to Jane that would be most likely to convince her to stay home?

• A) "Camping is fun but there are so many other fun things to do this weekend."
• B) "Camping is not fun."
• C) "Do you remember that the last two times you went camping you ended up getting sick?"
• D) "You should make a list of pros and cons before you decide."

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Definitions:

Taxes

Taxes refer to the compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Transaction Costs

Expenses incurred when buying or selling a good or service, including broker's fees, taxes, or costs related to the time and labor involved in making the transaction.

NPV Projects

Projects evaluated using Net Present Value, a method for determining the present value of future cash flows, minus the initial investment.

Compromise Policy

A strategy or decision that is made by finding a middle ground between two opposing positions or interests.