The Tendency for People to Base Their Judgments on Information

question 34

Multiple Choice

The tendency for people to base their judgments on information that is readily available but may not be accurate is called

• A)representative bias.
• B)availability bias.
• C)escalation of commitment.
• D)heuristical fallacy.
• E)bounded discretion.

---

Definitions:

Income Quintile

A statistical measure dividing the population into five equal groups based on income levels, to analyze economic inequality.

Gini Ratio

A measure of the income distribution within a population, indicating inequality where 0 represents perfect equality and 1 represents perfect inequality.

Income Inequality

The uneven distribution of income within a population, leading to disparities in wealth and living standards.

Taxes And Transfers

Taxes and transfers involve government activities related to collecting revenues through various forms of taxation and redistributing income through welfare programs and other transfers to support social objectives.