Which Statement About Heuristics Is Correct

question 16

Multiple Choice

Which statement about heuristics is correct?

• A)The availability heuristic occurs when people use information from memory as a basis for assessing a current situation or event.
• B)The representativeness heuristic occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences.
• C)The anchoring and adjustment heuristic involves making decisions based on alterations to a previously existing value or starting point.
• D)All of the above.
• E)None of the above.

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Definitions:

Optimal Quantity

Optimal quantity is the amount of a good or service that maximizes a firm's profits or an individual's utility, considering costs and benefits.

Weaker Economy

An economy characterized by slower growth, lower productivity, and potentially higher unemployment rates compared to a stronger economy.

Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment.

Mix of Potential Immigrants

The diverse characteristics (such as skills, education, and country of origin) of immigrants considered for entry into a country.