The Availability Heuristic Can Cause People to Incorrectly Assess the Probabilities

question 169

Multiple Choice

The availability heuristic can cause people to incorrectly assess the probabilities of various events because:

• A) the most available event is not always the most frequent
• B) the most likely event is not always the most frequent
• C) it is too difficult to compute joint probabilities of events
• D) it is too difficult to distinguish between probabilities and likelihoods

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Definitions:

Free Trade

An economic policy that allows for the unrestricted import and export of goods among countries without the imposition of tariffs, quotas, or other restrictions.

Tariffs and Quotas

Government-imposed taxes on imported goods (tariffs) and limits on the quantity of goods that can be imported (quotas) to protect domestic industries from foreign competition.

Favoured Nations

A policy or clause in an agreement ensuring that a country or party receives treatment at least as favorable as that given to any other country or party.

Tariffs

Taxes governments levy on imports from abroad.