When Interviewing for a Job, Your Potential Employer Asks What

question 10

Multiple Choice

When interviewing for a job, your potential employer asks what you would like your starting salary to be. You respond with a high number, and you eventually agree on a salary that is much higher than you anticipated. What heuristic did you hope that your employer would utilize?

• A) Representativeness
• B) Anchoring and adjusting
• C) Availability
• D) Simulation

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Definitions:

P (Price)

The amount of money required to purchase a good or service, determined by the interaction of supply and demand in the market.

Efficient Level

Describes a state where resources are allocated in a way that maximizes productivity or utility with minimal waste.

External Costs

Uncompensated negative effects experienced by others due to an individual or company's actions, not reflected in market prices.

Marginal Damage

The additional harm or cost caused by producing one more unit of a good or service, often used in the context of environmental economics.