Question : 31) A teacher told her students that she will give : 1377608

31) A teacher told her students that she will give a riddle which each student has to solve separately and then announce his or her answer in the class. Those who get the correct answer will get a gift. Kate, a student of the class, decided to give the answer which most students gave although the answer she got after solving the riddle was quite different. This is an example of ________.

A) adverse selection

B) moral hazard

C) a pecuniary externality

D) an information cascade

32) You are on a vacation in a foreign country. Since it is your first visit to the country, you do not know much about the tourist spots. So you decided to ask the manager of the hotel regarding the popular tourist places. He told you that there is a waterfall and a beautiful park close to the hotel which you can visit. You were wondering which place to go when you overheard some of the tourists planning a trek to one of the falls. You decided to join them. This is an example of a(n) ________.

A) moral hazard

B) adverse selection

C) pecuniary externality

D) information cascade

33) John has been trying to find a job for the last 6 months. He went for an interview at Aqua Inc. Although his performance was better than that of all the other candidates, the interview board rejected him thinking that they must be missing out on something about him that other employers have noticed and hence, have not hired him. A(n) ________ has occurred in this case.

A) positive externality

B) negative externality

C) moral hazard

D) information cascade

34) ________ is a tendency to search for information that reaffirms ones own beliefs, thus entrenching them further in their own prejudices.

A) Attenuation bias

B) Confirmation bias

C) Attentional bias

D) Negativity bias

35) Phillips owns some stocks of a pharmaceutical company. Of late, he was anticipating that the company would become bankrupt. He decides to find out more about the company’s financial condition before selling the stocks. However, he tends to read only the blogs of investors who are expecting the company to become bankrupt. He soon makes up his mind and sells the stock just before its price reaches an all-time high. Phillips’s behavior is an example of a(n) ________ bias.

A) confirmation

B) attentional

C) attenuation

D) distinction

36) Melanie is a reporter. She is writing an article on a certain issue. She, however, interviewed only those people who have the same opinion as she does on that particular issue. This is an example of a(n) ________ bias.

A) attenuation

B) distinction

C) attentional

D) confirmation

37) Stephanie wants to buy a laptop. She has chosen a particular model. However, before ordering it online, she decided to read some of the user reviews provided in the website. She happened to overlook the negative feedback of some users and focused only on the positive ones. This is an examples of a(n) ________ bias.

A) attenuation

B) distinction

C) attentional

D) confirmation

38) Mr. Smith wants to buy a house in a certain locality which he thinks is ideal for an elderly, single man like himself. However, before buying the house, he consults his friend who lives in the same locality and thinks that it is the ideal place for him. This is an example of a(n) ________.

A) confirmation bias

B) attenuation bias

C) attentional bias

D) distinction bias

39) Robert is interviewing a candidate for employment in his company and believes that the applicant is highly intelligent. If Robert only pays attention to information that is consistent with his belief, a(n) ________ will occur.

A) confirmation bias

B) attentional bias

C) attenuation bias

D) distinction bias

40) An economist is conducting a survey to evaluate a program launched by the government. He ends up collecting data on those households which were adversely affected by the program, reaffirming his own belief that the program has been largely unsuccessful. This is an example of a(n) ________.

A) confirmation bias

B) attentional bias

C) attenuation bias

D) distinction bias