Mark Feels That Gold Will Increase in Value Significantly This

question 23

Multiple Choice

Mark feels that gold will increase in value significantly this coming year simply because it has lost value in each of the last five years. Mark is displaying signs of the:

• A) clustering illusion.
• B) house money effect.
• C) gambler's fallacy.
• D) endowment effect.
• E) loser's turnaround.

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Definitions:

Central Route

A cognitive processing path used in persuasive communication that involves careful and thoughtfully analyzing the content of the message.

Fundamental Attribution Error

The tendency to overestimate the effect of disposition or personality and underestimate the effect of the situation in explaining social behavior.

Personal Traits

characteristics or qualities that define an individual's personality and behavior.

Situational Influences

Factors in the environment or specific situation that affect people's behavior, decisions, and feelings.