Suppose That You Meet Someone Who Is Smart, Adventurous, and Highly

question 176

Multiple Choice

Suppose that you meet someone who is smart, adventurous, and highly knowledgeable about rockets and outer space. Even though there are not many astronauts in the world, you might immediately assume that this person is an astronaut just because he or she fits your image of what an astronaut is like. That is, you might ____ and rely on the ____.

• A) commit the base rate fallacy; representativeness heuristic
• B) commit the conjunction fallacy; representativeness heuristic
• C) engage in the confirmation bias; availability heuristic
• D) engage in the false consensus effect; availability heuristic

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Definitions:

Commodity Money

Money whose value comes from a commodity out of which it is made, such as gold and silver, which inherently have value.

Goldsmith

A craftsperson skilled in making items of gold.

Ownership Transfer

The process by which the legal rights to an asset are transferred from one party to another, often involving formal documentation.

Fractional Reserve Banking

A banking system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal, enabling banks to lend out more money than they hold.