When are outcomes said to be independent? What is meant by the gambler's fallacy?
What will be an ideal response?
Two outcomes are said to be independent when knowing about one outcome does not help you predict the other outcome. The gambler's fallacy occurs when gamblers mistakenly believethat independent events are unlikely to recur. For example, someone who believes that you are unlikely to roll a 2 with two dice (snake eyes) if you just rolled a 2 is guilty of the gambler's fallacy. The two rolls of the dice are independent events; the probability you will roll a 2 this time is 1/36 regardless of what you rolled last time.
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If real wages fall:
A) consumer demand is likely to increase. B) employers are likely to hire more workers. C) the level of economic production will always increase. D) the level of economic production will always decrease.
A zero-sum economy would result from
A. moderate economic growth. B. excessive growth after adjusting for inflation rates. C. a lack of economic growth. D. nominal GDP growth.