Answer:
"the pessimists underestimate our decision-making accuracy because of factors such as choosing questions that contradict people's schemas"
Explanation:
Thaler is together with Daniel Khaneman one of the parents of behavioral economics. This branch focuses on explaining and even looking for meaning in our economic behavior. In other words, why we make the decisions we make regarding our money.
In many social sciences, two different points of view about our rationality coexist today: the pessimist, who sees our limitations as systematic errors at the root of our possible irrational behavior; and the optimist, who conceives these limits as ecological advantages. The first point of view, the pessimist, is maintained by Tversky and Kahneman in their research program on heuristics and biases, and is also based on the theory of "little shoves" or nudges, which Thaler and Sunstein propose following that approach of Tversky and Kahneman.
The second, the optimist, has been developed by Gerd Gigerenzer and the Center for Adaptive Behavior and Cognition (ABC) at the Max Planck Institute for Human Development, and by other evolutionary psychologists such as Leda Cosmides and John Tooby.
The answer would be B. Aztec
Answer: This concept can be used to determine the acceptable level of risk, by placing the amount of risk in a given situation to balance against time, trouble, cost, and physical difficulty of taking precautions to avoid risk. If a balance is seen with risk against this variables, then the risk is acceptable.
The pitfall to applying this concept are as follows;
• it doesn't guarantee safety.
• it is always expensive, if we want to apply this principle to it best.
• it doesn't have a standard order for all kinds of risk. The application varies from risk to risk, also depending on locations of the risk.
Explanation: The ALARP principle is that risk shall be reduced as far as reasonably practicable. This means that zero risk can not be achieved. But we can achieve zero accident, using the ALARP principle.
Before we can boast for achieving ALARP, we must check if the risk is equal or less than time spent,cost, the trouble or challenge, and the physical difficulty of taking a good measure to avoid the risk. If the risk is equal or less than this variables, that means that the risk has been reduced as far as reasonably practicable.
