The Difference Between the Representativeness Heuristic and the Availability Heuristic

question 57

Multiple Choice

The difference between the representativeness heuristic and the availability heuristic is that the representativeness heuristic assumes that ___,and the availability heuristic assumes that ___.

• A) we tend to look for information that supports our current beliefs; all members of a category are like the average of that category
• B) all members of a category share similar characteristics; events that are easy to bring to mind are more common
• C) our ability to make rational decisions is limited by things beyond our control; we use whatever information is available to evaluate our options
• D) we tend to view objects as having only one purpose or use; we tend to use whatever strategies have worked in the past

Apply the principle of marginal analysis to firm decision-making in purely competitive markets.

Determine the conditions under which a firm should continue production or shut down in the short run.

Understand the relationship between price, average revenue, marginal cost, and marginal revenue in the determination of production levels.

Calculate economic profits or losses based on price, average cost, and output levels.

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Definitions:

Foreign-Policy Problem

Issues that arise in the interactions between countries, including conflicts, diplomatic challenges, and negotiations.

Civil Liberties

Individual rights and freedoms that are protected from infringement by governments, such as freedom of speech, privacy, and the right to a fair trial.

Medgar Evers

An American civil rights activist in Mississippi and the state's field secretary for the NAACP, who was assassinated in 1963.

Death Threats

Statements or indications that someone intends to kill or seriously harm another person.