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_________ Heuristic Is a Natural Tendency to Evaluate Probabilities of Events

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_________ heuristic is a natural tendency to evaluate probabilities of events or objects by the degree to which they resemble other events or objects rather than on objective probability information.


Definitions:

Pareto Efficient

An economic state where resources are allocated in a way that it is impossible to make any one individual better off without making at least one individual worse off.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Private Good

An economic product or service that is consumed by an individual or a specific group, characterized by its exclusivity and rivalry in consumption.

Utility Function

A mathematical representation that assigns a value to every possible choice to represent the level of satisfaction or happiness it provides the consumer.

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