The _____ Occurs When Decisions Are Influenced by Inappropriate Allegiance

question 88

Multiple Choice

The _____ occurs when decisions are influenced by inappropriate allegiance to a previously existing value or starting point.

• A) confirmation error
• B) lack-of-participation error
• C) representativeness bias
• D) anchoring and adjustment bias
• E) availability bias

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Definitions:

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.

Simplified

Made easier to understand or do; reduced in complexity.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.

Invisible Hand

A metaphor introduced by Adam Smith to describe how individuals pursuing their own interests unintentionally benefit society as a whole.