Which of the Following Factors Would Explain the Seemingly Irrational

question 13

Multiple Choice

Which of the following factors would explain the seemingly irrational behavior of a father who smokes (high risk factor for baby) throwing away his baby's teething rings that may contain phthalates (seemingly low risk factor for baby) .

• A) People tend to downplay risks that are associated with activities they are committed to or enjoy.
• B) Most people do not understand the concepts of probability.
• C) News media can give a biased view of hazards.
• D) People tend to have an irrational fear of certain technologies that are not as well understood.
• E) All of these factors can lead to the relatively irrational behavior demonstrated by the father.

---

Definitions:

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various price levels.

Decreasing-cost Industry

An industry where average costs of production decrease as the scale of output increases.

Long-run Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, with all adjustments made for factors affecting supply or demand over time.

Product Demand

The desire and willingness of consumers to purchase a particular product at various prices during a certain period.