Lily wants to invest in the stock market. She notices that the share price for Great Flowers Inc. has been rising for weeks. She chooses to invest in Great Flowers Inc. because she assumes it will continue to rise purely because of the run it has been on. Lily suffers from:
A. the hot-hand fallacy.
B. the gambler's fallacy.
C. a present bias.
D. the sunk cost fallacy.
A. the hot-hand fallacy.
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Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
If you were president of the United States, what would you do to reduce the natural rate of unemployment? Propose at least three different methods
What will be an ideal response?
Which of the following statements indicates the idea of trade-offs?
A) "I chose the road less traveled." B) "The devil made me do it." C) "You've got me under your spell." D) "Always give it the best that you can."
If the substitution effect is always greater than the income effect, then an individual's labor supply curve will
a. bend backward b. always have a positive slope c. always have a negative slope d. be vertical e. be horizontal