-Refer to Exhibit 11-2

question 28

Multiple Choice

-Refer to Exhibit 11-2.Compare points A and B.Which of the following is true?

• A) At A and B,the tax rates are the same,but tax revenues are different.
• B) At A tax rates are higher than at B,but tax revenues are the same at both points.
• C) At B tax rates are higher than at A,but tax revenues are the same at both points.
• D) none of the above

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Representative Heuristic

A mental shortcut that involves making judgments based on how similar something is to our typical idea of a particular category.

Primary Dimension

Fundamental categories or aspects that define the nature or characteristics of an entity, concept, or system.

Perceptions

The process of organizing, identifying, and interpreting sensory information in order to represent and understand the environment or an idea.