Your friend tells you that her dad just suffered from a stroke because his blood pressure and cholesterol were too high. You know that your own father also has high blood pressure so you become worried that he will also have a stroke. This is an example of which systematic mistake that people make?


People give too much weight to a small number of vivid observations.

Economics

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To stop a speculative attack interest rates must be ________, which will ________ aggregate demand.

A. decreased; decrease B. increased; increase C. decreased; increase D. increased; decrease

Economics

A temporary decrease in taxes leads to

A) a small increase in current consumption. B) a large increase in current consumption. C) a small decrease in future consumption. D) a large decrease in future consumption.

Economics

Which of the following factors would not be considered by a fundamental analyst when predicting stock prices?

a. the future demand for a firm's products b. the patents held by a firm c. the likelihood of new firms competing with an existing firm d. potential changes in a firm's costs of production e. recent jumps in a firm's stock price

Economics

A common characteristic in oligopolistic markets is

a. consideration of rivals' reactions. b. standardized products. c. high profits. d. unused capacity.

Economics