The Availability Heuristic Leads Us to Make Incorrect Estimates Regarding

question 5

Multiple Choice

The availability heuristic leads us to make incorrect estimates regarding the risk of different causes of death because we _____ the risk of more publicized causes and _____ the risk of less publicized causes.

• A) overestimate; overestimate
• B) overestimate; underestimate
• C) underestimate; overestimate
• D) underestimate; underestimate

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Definitions:

Federal Income Tax

A tax levied by the federal government on individuals' and corporations' yearly income.

Payroll Tax

Taxes imposed on employers and employees, typically calculated as a percentage of the salaries that employers pay their staff.

Benefits Principle

A tax principle stating that those who benefit from government services should pay in proportion to the amount they benefit.

Ability-To-Pay

A principle in taxation that suggests taxes should be levied according to the taxpayer's ability to bear the tax burden.