Underestimating the Time and Cost Necessary to Complete a Project

question 244

Multiple Choice

Underestimating the time and cost necessary to complete a project best demonstrates

• A)divergent thinking.
• B)the framing effect.
• C)the availability heuristic.
• D)overconfidence.

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Definitions:

Inside The Frontier

A condition in which an economy is not operating at its full productive capacity, implying underutilization of resources.

Inefficiency Or Unemployment

Situations where resources are not fully utilized in the economy, leading to joblessness and wastage of economic potential.

Bowed-Out Frontier

A graphical representation of an economy’s maximum output possibilities that show increasing opportunity costs, resulting in a curve that bows outward.

Opportunity Cost

The value of the best alternative forgone when a decision is made to choose one option over others.