1. Which of the following would be an observation of the availability heuristic?

A. We tend to want things more when we think they are scarce

B. Green and Red cars sell more than all other colors combined.

C.We overestimate the amount of crime in our area the more we pay attention to the news.

D.We tend to want things more when we think they are scarce

2.Why would a student bring an apple to his/her teacher?

A. Because of the endowment effect, the teacher won't want to give up his/her apple and will treat the student more favorably.

B.Because of loss aversion, the teacher won't want to give up the opportunity for future gifts and will treat the student more favorably.

C.Because of the fundamental attribution error, the teacher may reward the student with a good grade like they rewarded the teacher with the apple.

D.Because of the halo effect, this kind of deed may bias the teacher towards seeing the student in a more positive light when it comes to grading.

3.The valence of emotion is how strongly we feel it and whether they are positive or negative. What can be said about the valence of outcomes of gambles

A.Wins are of lower valence versus equivalent losses

BThe valence of both wins and losses rise proportionally with their value.

C.Neither wins nor losses should have a higher valence if the absolute values are the same.

D. Losses are of lower valence versus equivalent wins.