Representativeness Heuristic Is Best Explained As

question 26

Multiple Choice

Representativeness heuristic is best explained as:

• A) the process of assuming events are random even when they are not.
• B) the creation of patterns in planned events.
• C) concluding that casual factors cause random events when in fact they do not.
• D) believing that random events that occur in clusters are truly random.
• E) overconfidence in one's own skills as an investor.

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Definitions:

Donald Boudreaux

An American economist known for his work in free market economics and public choice theory, and for being a prolific writer on these subjects.

Private Property

Assets or possessions owned by individuals or corporations and protected by law from unauthorized use or trespass by others.

Alternative Uses

The different purposes or applications a resource can be used for, highlighting economic choices and trade-offs.

Capital Goods

Long-lasting goods acquired and used by businesses to produce goods and services and contribute to their productive capacity.