The Last Time the Whigs Took Over Congress, Stock Prices

question 42

Multiple Choice

The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________.

• A) representation bias
• B) selective perception bias
• C) randomness bias
• D) anchoring effect

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Definitions:

Comparative Advantage

The ability of an individual or group to produce a good or service at a lower opportunity cost than another.

Tractors

Vehicles specially designed to deliver high torque at low speeds, used mainly in the farming industry for agricultural purposes.

Crude Oil

A crude, naturally existing petroleum substance comprising hydrocarbon deposits and miscellaneous organic materials.

Opportunity Cost

The expense incurred from overlooking the next most favorable choice during a decision-making process.