Daniel Kahneman, once, put it while explaining the relationship between illusion and judgment Anything that makes it easier for the associative machine to run smoothly will also bias beliefs. A remarkable way to make people believe in falsehood is frequent repetition, because familiarity is not easily distinguished from truth. Authoritarian institutions and marketers have always known this fact. (2 pts.) This is called 1. The concept of cognitive ease 2. The theory of believing and disbelieving 3. The affect heuristic 4. The law of small numbers 5. The concept of cause-and-effect d. Which one is not a form of overconfidence (2 pts.) 1. Miscalibration 2. Optimistic bias 3. Better-than-average Effect 4. Pervasiveness of irrational forces 5. Anchoring e. Expected utility theory is really a theory that deals with risk and uncertainty. A risky situation is one where the possible outcomes are defined with well-defined probabilities associated with them. An uncertain situation is one where you cannot assign probabilities or define the list of possible outcomes. (2 pts.)

A. True B. False