The text gives examples of outcome framing, new vs. old risks, possibility & certainty effects, and honoring sunk costs. Where people are making decision errors in these cases, what do they all have in common?
A. they do not know the benefits and harms of the various outcomes they are considering
B. they are failing to adequately assess the probability of the various outcomes
C. they are taking something into account in the decision other than expected utility
D. they are discounting future utility in a time-inconsistent way
Answer: C. they are taking something into account in the decision other than expected utility
You might also like to view...
A paradox can be dissolved by
A) showing that at least one of the paradoxical claims is false. B) showing that the paradoxical claims are not really inconsistent. C) showing that at least one of the paradoxical claims is true.
Socrates lays the groundwork for his argument by stating which of the following principles?
A) One should always do what one's friends advise. B) Immoral actions cause no harm if no one finds out about them. C) The preservation of life is our most important duty. D) Two wrongs do not make a right.
INSTRUCTIONS: Select the best answer for the following problems. If an indirect truth table requiring more than one line is constructed for either an argument or a series of statements and no contradiction is derived on the first line, then:
A) The argument is valid and the statements are consistent. B) The argument is invalid and the statements are consistent. C) The argument is valid and the statements are inconsistent. D) The argument is invalid and the statements are inconsistent. E) The second line of the truth table must be completed.
Translate the following into a standard-form categorical claim: Not all journalists are authors.
What will be an ideal response?