If Jin-Ho Buys a Personal Computer to Maintain Household Financial

question 182

Multiple Choice

If Jin-Ho buys a personal computer to maintain household financial records and prepare budgets, he

• A)will spend less time in nonmarket work
• B)will spend more time engaged in leisure activities
• C)will increase the productivity of market work
• D)is less likely to hire tax preparation services on the market
• E)is less likely to prepare his own income tax returns at home

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event based on how similar it is to the typical case.

Base Rates

The fundamental frequency at which an event occurs in a given population; essential for making accurate predictions or judgments.

Fluid Intelligence

The capacity to reason and solve new problems independently of previously acquired knowledge.

Crystallized Intelligence

The ability to use skills, knowledge, and experience, often considered to improve with age.