Which of the Following Best Describes the Availability Heuristic

question 46

Multiple Choice

Which of the following best describes the availability heuristic?

• A) the inclination to see events that have already occurred as being more predictable than they were before they took place
• B) the phenomenon in which people predict the frequency of an event based on how easily an example can be brought to mind
• C) a cognitive bias that limits a person to using an object only in the way it is traditionally used
• D) the tendency for people to favor information that confirms their preconceptions regardless of whether the information is true

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Definitions:

Factor Of Production

An economic term describing the inputs used in the production of goods or services to earn an income, namely labor, capital, land, and entrepreneurship.

Marginal Productivity Theory

A theory stating that the demand for a factor of production is derived from the marginal product that the factor adds to the output.

Equilibrium Value

The price and quantity at which supply and demand in a market are balanced.

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.