Penny Is a Smoker

question 83

Multiple Choice

Penny is a smoker. Although she has heard of the data linking smoking to lung cancer and emphysema, she does not feel concerned. Penny's belief that she will not get sick is an example of:

• A) the availability heuristic.
• B) the representativeness heuristic.
• C) the overconfidence phenomenon.
• D) hindsight bias.

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Definitions:

New York Stock Exchange Index

An indicator that shows the performance of all stocks listed on the New York Stock Exchange.

Wheat Futures

Contracts that specify the future delivery of a certain amount of wheat at a predetermined price.

Price Increase

An upward movement in the price of a good, service, or asset, often due to factors like demand growth or supply constraints.

Long Position

Holding an asset with the expectation that it will increase in value, often contrasted with taking a short position, betting on a decline in value.