The Finding That People Tend to Incorrectly Conclude That More

question 24

Multiple Choice

The finding that people tend to incorrectly conclude that more people die from tornados than from asthma has been explained in terms of the

• A) representativeness heuristic.
• B) availability heuristic.
• C) falsification principle.
• D) belief bias.

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Definitions:

Long-Run Growth

The sustained upward trajectory in the economy's output over time, reflecting long-term increases in productivity and capacity.

Closed Economy

A closed economy is one that does not engage in international trade of goods and services, nor does it allow for capital flows from abroad.

Households Or Invested

The concept of how households either consume goods and services for their own use or allocate savings into investments.

Loanable Funds

The funds available within an economy for borrowing, which consist of household savings, business savings, and any government surplus.