A survey of 1,500 frequent restaurant patrons revealed that, Chang Cheng, a local Chinese restaurant, offers high-quality food at low prices. Based on one dining experience, a restaurant critic gave Chang Cheng a poor review, saying the food was not very good. As a result, you decide not to dine at Chang Cheng. This decision is an example of which of the following systematic mistakes that people
make when making decisions?
a. People are overconfident.
b. People give too much weight to a small number of vivid observations.
c. People are reluctant to change their minds.
d. All of the above are correct.
b
You might also like to view...
A country has a trade surplus when
A) imports exceed exports. B) imports equal exports. C) exports exceed imports. D) imports equal zero.
Collusion occurs when
a. a firm chooses a level of output to maximize its own profit b. firms get together to maximize joint profits c. firms refuse to follow their price leaders d. firms petition their U.S. senators for favors e. two firms' price and output decisions come into conflict
If the price elasticity is supply coefficient is greater than one, then supply is:
a. elastic. b. inelastic. c. perfectly elastic. d. perfectly inelastic.
If equilibrium GDP is $1 trillion greater than full employment GDP, and there is an inflationary gap of $250 billion, the multiplier is
A. zero. B. 1. C. 2.5. D. 4.