Define the term heuristic thinking.
What will be an ideal response
Question 2
Which of the following is probably an expression of the influence of the Hindsight Bias?
(a) There are a couple of city cops across the street on foot patrol. Just a couple more bullies in blue uniforms looking to roust some poor homeless dude or bust a couple of brown or black kids with a trumped up drug possession charge.
(b) It's one thing for us to serve and protect. That's our oath as police officers. But, hey, when you're out on the streets you got to protect yourself. I mean, it's a combat zone out there. We got stick together, cover each other's six. You know what I mean.
(c) When I was just going off to college I used to talk with my Dad about politics. He said the best approach was always to be conservative. So that's what I am.
(d) There was a time when I thought that the reason you didn't do your fair share of the housework was because you did not realize that I was your partner, not your mother. But now that you occasionally do the shopping, the laundry, and help with the dinner dishes I realize that you must not think I'm your mother but your maid instead.
(e) We did everything right. Everything It was a useful product. Well designed and well built. We used an outstanding marketing approach. It is just that nobody wanted to buy it. That's not our fault. Nobody can predict what the public will like. The market just was not ready for what we were offering. Nothing we could do about that.
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Critical-Thinking Tip
Flexible exchange rates are supposed to prevent long-term trade deficits.