Because gun violence is portrayed frequently on television and in movies, people mistakenly assign too high of a probability that they will fall victim to gun violence, and too low of a probability to more likely but less publicized events. This
phenomenon illustrates:
A. the effect of the availability heuristic.
B. that people suffer from hindsight bias.
C. that events are poorly framed by the media.
D. the self-serving bias at work.
Answer: A
You might also like to view...
According to traditional Keynesian economics, expansionary fiscal policy initiated by the federal government
A) is never appropriate. B) is an appropriate way to prevent recessions and depressions. C) is an appropriate way to slow down an over-heated economy. D) will always fail due to crowding out effects.
Discontinuing a Missile Program Merowak Missiles has developed its Democratizer Offensive Weapon System (DOWS) for the US military. After sinking $1 billion into R&D and design, it spent $0.5 billion building the tools and production facility that are
unique to DOWS production. It houses these in standard factory floor space that costs $1 million. Each missile has a marginal cost of $2,000 . The Pentagon is thinking of discontinuing the program because the missiles are too expensive. If Merowak were to get an order for 50,000 missiles, what would its breakeven price be?
The text points out that there is an inverse relationship between the fiscal cost of a bank crisis and real GDP growth. What are some of the reasons that can explain this inverse relationship?
What will be an ideal response?
The Bretton Woods agreement:
A. was established immediately after World War I. B. continued the existing international monetary system. C. tied the value of foreign currencies to British sterling. D. established the International Monetary Fund.