The fact that we do not immediately pick up on the fact that a large country like China may have a small proportion of rich people but still have a very large number of rich can be attributed to:
A) A failure to understand base rates.
B) The conjunction fallacy.
C) The failure to distinguish between correlation and causation.
D) The failure to distinguish between conjunctive and disjunctive events.
Short essay type questions

Question

Quizplus · Accepted Answer

This is due to a failure to understand base rates, which refers to not considering the overall size or total population of the country when evaluating the proportion of rich people. Even a small percentage of a very large number can result in a large absolute number of individuals.

The Fact That We Do Not Immediately Pick Up on the Fact