ECONOMICS

Detailed explanation-1: -The availability bias describes the actions of decision makers who try to create meaning out of random events.

Detailed explanation-2: -The framing bias occurs when decision makers select and highlight certain aspects of a situation while excluding others. By drawing attention to specific aspects of a situation and highlighting them, they downplay or omit other aspects, distort what they see, and create incorrect reference points.

Detailed explanation-3: -What is it called when a decision maker recognizes information that supports a decision, while ignoring contracting information? confirmation bias. The decision-making heuristic used when people estimate the probability of an event occurring based on impressions about similar occurrences is: representativeness bias.

Detailed explanation-4: -A bias is a systematic error in decision-making and thinking. It occurs when people process and interpret information in the world around them. It affects the decisions and judgments that they make. People sometimes confuse cognitive biases with logical fallacies.