Suppose That the Poverty Rate Had Been Set at $21,000

question 132

Multiple Choice

Suppose that the poverty rate had been set at $21,000 in 2008.Estimate what the poverty rate would have been in that year.

• A)7%
• B)13%
• C)20%
• D)25%
• E)35%

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Definitions:

Functional Fixedness

A bias in cognition that confines a person to employ an object exclusively in its customary use, obstructing the process of generating creative solutions.

Mental Sets

Mental sets refer to the tendency to approach situations in a certain way because that method worked in the past, potentially preventing us from seeing alternative solutions.

Effective Problem Solving

A process of defining a problem, generating solutions, and choosing the best course of action to address the issue at hand.

Law Of Small Numbers

A bias in which people infer patterns or make generalizations from a small sample size, which may lead to misleading conclusions.