For Many People, a 50-50 Flip of a Coin for $100

question 66

Multiple Choice

For many people, a 50-50 flip of a coin for $100 might not be worth as much as a sure promise of $50, even though the gamble is mathematically worth twice as much as the sure thing. This is an example of ________.

• A) selective perception
• B) self-serving bias
• C) risk aversion
• D) availability bias
• E) confirmation bias

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Definitions:

Weber's Definitions

The concepts and theoretical frameworks developed by Max Weber, a key sociologist who studied authority, social stratification, and the impact of culture on society.

Class

In Marx’s sense of the term, is determined by a person’s relationship to the means of production. In Weber’s usage, class is determined by a person’s “market situation.”

Status Groups

Communities or groups of people who share a similar social status, often determined by factors such as occupation, wealth, and prestige.

Parties

Social gatherings of invited guests, typically involving eating, drinking, and entertainment; in a political context, organized groups of people with similar ideological beliefs or goals.