The Availability Heuristic Refers To

question 89

Multiple Choice

The availability heuristic refers to:

• A) decisions based on proximity to others.
• B) judgments based on how easily information comes to mind.
• C) perceptions guided by how busy our lives are.
• D) how individuals strive to conserve physical effort.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping due to the law of demand.

Cost Function

A mathematical relationship that describes how the costs incurred by a company vary with the level of output or production.

Cartel Arrangement

An agreement among competing firms in the same industry to control prices, limit output, or divide markets, in order to maximize profits collectively.

Manufacturing Plant

A facility that is equipped with machinery and staff for the purpose of producing goods on a large scale.