When Larina Started College,she Was Certain That She Would Never

question 121

Multiple Choice

When Larina started college,she was certain that she would never smoke marijuana.By the end of her freshman year,however,Larina had used the drug on three different occasions.Larina's experience best illustrates

• A) the availability heuristic.
• B) confirmation bias.
• C) overconfidence.
• D) the framing effect.

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Definitions:

Free Trade

A policy to eliminate discrimination against imports and exports, allowing goods to move freely between countries without tariffs or quotas.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its cost of production or lower than the price in its domestic market.

Diversification

An investment strategy that involves spreading investments among various financial instruments, industries, and other categories to reduce risk.