Chapter 12,on Reasoning and Decision Making,emphasizes That We Frequently Endorse

question 80

Multiple Choice

Chapter 12,on reasoning and decision making,emphasizes that we frequently endorse our current hypotheses and thoughts,rather than questioning them.Which of the following topics is least likely to show an overemphasis on our current hypotheses?

• A)The confirmation bias
• B)Illusory correlations
• C)The recognition heuristic
• D)The anchoring and adjustment heuristic

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.

Administrative Cost

Expenses related to the general operation of a business, including office supplies, salaries of non-production staff, and rent.

Efficiency

The extent to which resources are utilized to their maximum potential, minimizing waste and maximizing output or outcomes.

Proportional Income Tax

A tax system where the tax rate remains constant regardless of the amount of income earned, meaning taxpayers pay the same percentage of their income in taxes.