Which of the following is a feature of the 'Availability Heuristic'? MCQ with Answer and Explanation

Which of the following is a feature of the 'Availability Heuristic'?
A. People assess the probability of an event by the ease with which instances come to mind
B. People always use base rates correctly
C. Only statistical frequencies matter
D. Memory has no effect on probability judgments
Answer: Option A
Solution (By JKSSB Mock Tests)
The availability heuristic leads people to judge the likelihood of events by how readily examples can be recalled, which can produce systematic biases when memory is distorted by vividness or recency.

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Practice More Economy Set 1 Questions

Question #1
The 'New Economic Policy 1991' devalued the rupee by about how much in two stages?
A. 30%
B. 18%
C. 50%
D. 5%

Correct Answer: Option B


Explanation:
In July 1991, the rupee was devalued by about 18% in two steps.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'net investment' is equal to gross investment minus:
A. savings
B. consumption
C. taxes
D. depreciation

Correct Answer: Option D


Explanation:
Net investment = gross investment - depreciation.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on club membership fees is:
A. 5%
B. 12%
C. 0%
D. 18%

Correct Answer: Option D


Explanation:
Club membership fees attract 18% GST.

This question belongs to: Economy GK Economy Set 1