#1
Which of the following is an example of a cognitive bias?
Confirmation bias
ExplanationTendency to favor information that confirms one's preconceptions.
#2
What does the term 'opportunity cost' refer to in economics?
The value of the next best alternative forgone
ExplanationCost of forgoing the next best alternative when making a decision.
#3
Which of the following is NOT a step in the critical thinking process?
Making hasty assumptions
ExplanationAvoiding quick, unexamined judgments in the reasoning process.
#4
What is the principle of 'Occam's Razor' in critical thinking?
The simplest explanation is usually the correct one
ExplanationPreferring simpler explanations over complex ones when possible.
#5
What does the term 'consumer surplus' represent in economics?
The difference between what consumers are willing to pay and what they actually pay
ExplanationMeasure of consumer benefit when willing to pay more than market price.
#6
Which of the following is NOT a characteristic of a credible source?
Sensationalism
ExplanationAvoidance of exaggerated or dramatic presentation of information.
#7
What is the purpose of 'caveat emptor' in the context of consumer protection?
To warn consumers of potential risks
ExplanationEmphasizing the buyer's responsibility to be cautious and informed.
#8
What is the primary purpose of a cost-benefit analysis in decision-making?
To compare the costs and benefits of a decision
ExplanationSystematic evaluation of the pros and cons of an action or choice.
#9
In statistics, what does 'statistical significance' refer to?
The probability of obtaining a result by chance
ExplanationLikelihood that an observed difference in data is not due to random chance.
#10
What is the primary purpose of a control group in an experiment?
To provide a baseline for comparison
ExplanationGroup used for comparison to evaluate the effect of an experimental intervention.
#11
Which fallacy occurs when someone argues that because something happened before, it will happen again?
Post hoc ergo propter hoc
ExplanationIncorrectly assuming that correlation implies causation.
#12
In terms of personal finance, what does the term 'liquidity' refer to?
The ability to quickly convert assets into cash without significant loss
ExplanationMeasure of how easily assets can be converted into cash.
#13
What does the term 'market equilibrium' signify in economics?
A state where quantity demanded equals quantity supplied
ExplanationBalance point where supply matches demand in a market.
#14
Which of the following is a common logical fallacy?
Circular reasoning
ExplanationUsing the conclusion to support the premise, creating a loop.