In a Psychology Study, People Are Asked Which Is More

question 82

Multiple Choice

In a psychology study, people are asked which is more likely: an earthquake that kills 100,000 people or an earthquake in California that kills 100,000 people. Far more people will say that the earthquake in California is more likely, even though there are clearly more earthquakes than there are earthquakes in California. This is an example of the:

• A) confirmation bias
• B) framing effect
• C) representativeness heuristic
• D) availability heuristic

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Definitions:

International Strategy

The planning and execution of business operations to expand and operate in multiple countries, involving considerations of globalization, market entry, and cultural differences.

National Strategy

A comprehensive plan designed to achieve specific goals on a country-wide scale.

Dominant Strategy

In game theory, a strategy that is best for a player, irrespective of what strategies other players choose.

Payoff Matrices

A table that shows the potential outcomes of different strategies in a game, used in decision theory and economics.