What Are Some of the Complications of Measuring Income

question 86

Essay

What are some of the complications of measuring income?

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Definitions:

John Wayne

An iconic American film actor famous for his roles in Westerns and war movies.

Representativeness Heuristic

The representativeness heuristic is a cognitive bias where individuals judge the probability or frequency of a hypothesis by considering how much the hypothesis resembles available data.

Base-Rate Effect

A cognitive error whereby people judge the likelihood of an event by intuitive examples rather than by statistical evidence.

Availability Heuristic

A cognitive shortcut based on the first examples that appear in someone's thoughts when assessing a certain topic, idea, strategy, or choice.