Author Question: Which of the following is an example of the gambler's fallacy? a. If you flip a coin six times and ... (Read 73 times)

armygirl · **on:** Jun 30, 2018

Which of the following is an example of the gambler's fallacy?
a. If you flip a coin six times and it comes up heads each time, when you flip for the seventh time the odds are better that it will come up tails.
b. People think that housing prices will continue to rise because they have continually risen over the past 10 years.
c. If I send my resume to enough employers, the law of averages says that someone will eventually hire me.
d. all of the above

Question 2

If a dollar spent on capital yields less marginal revenue product than labor, the profit of the firm is reduced if it hires less capital than labor.
a. True
b. False
Indicate whether the statement is true or false