Time Inconsistency Arises When the Government

question 51

Multiple Choice

Time inconsistency arises when the government

• A)does not explicitly state its long-term goals.
• B)does not know how to achieve its long-term goals.
• C)is willing to deviate from its long-term goals for the sake of short-run gain.
• D)often changes its long-term goals.
• E)adheres to its long-term goals.

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Definitions:

Hindsight Bias

The tendency to believe, after an outcome is already known, that one would have foreseen it, often referred to as the "I-knew-it-all-along" effect.

Stereotypes

Widely held but fixed and oversimplified images or ideas about a particular type of person or thing.

Prejudice

Prejudice is a preconceived opinion or bias against an individual or group based on their perceived characteristics, often without proper knowledge.

Bias

A preconceived opinion or inclination towards something or someone, often unfair or prejudicial.