Assume That an Analyst at a Leading Business Daily Observes

question 18

Multiple Choice

Assume that an analyst at a leading business daily observes an increase in productivity across industries which announced healthy annual bonus for their employees.This leads him to conclude that productivity is directly related to the incentive scheme followed by companies.The analyst however ignored the increase in capital per worker ratio and other technological developments in these companies which also affected productivity.This error in reasoning is related to:

• A)bounded rationality.
• B)selection bias.
• C)representative heuristics.
• D)availability heuristics.

---

Definitions:

Psychologists

Professionals in the field of psychology who study mental processes and behavior, often providing therapy and counseling to help individuals cope with mental health issues.

Antitreatment Network

Groups or movements that oppose or resist standard medical treatments or interventions.

Psychological Problems

Psychological problems encompass a wide range of mental health issues and disorders that affect a person's thinking, behavior, and emotions, impacting their overall quality of life.

Type I Schizophrenia

According to some theorists, a type of schizophrenia dominated by positive symptoms, such as delusions, hallucinations, and certain formal thought disorders.