Lesson #7 Quiz >> gaue won Markets

1. I beg your pardon of the following ideal describes the “invisible hand”?Subtle government financial interventions can lead come the inefficient allocation of resources.The free market, guided by self-interest, is mislead come inefficiently clues resources.Subtle government financial interventions can ensure the enough production of goods to meet society’s demands.

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The totally free market, guided by self-interest, guarantee the sufficient production of products to satisfy society’s demands.2. What problems does possibility theory solve? (check all the apply)People can underestimate high probabilities and also overestimate low probabilitiesPeople do not treat gambles as identical to their meant utilityPeople will certainly make large gambles to stop lossesPeople will often make to buy impulsively3. What is the wishful reasoning bias?People think that, if castle hope because that something strongly enough, it will be much more likely come happen.People over-estimate probabilities of things they would choose to it is in true.People carry out not take into consideration the probability that the things they want most.People hope the their sports team or politics candidate will certainly win4. Ricardo thinks that, since culture seems comparable to what it was in the late 1920s, a second great Depression is coming soon. Come which cognitive prejudice is Ricardo fall victim?Representativeness heuristicThe frame effectThe disjunction effectAttention anomalies5. What is Newcomb’s paradox?People law irrationally when confronted with decision which involve big sums the money.People will certainly behave differently if play games versus a computer contrasted to play them v a human opponent.People sometimes readjust their habits when lock learn around a prediction which has been made around the future.People favor a tiny chance in ~ winning $1 million than a high chance of to win $1000.6. I beg your pardon of the following is no a typical trait that somebody v Antisocial Personality Disorder?Lack that empathyLack of desire to communicate with othersManipulativeHeightened self-esteem

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