Studies of Judgmental Overconfidence Show That Our Expectations for the Future

question 6

Multiple Choice

Studies of judgmental overconfidence show that our expectations for the future are vastly positive

• A) even though we know we've made mistakes in the past.
• B) based on our positive evaluation of our previous behaviour.
• C) because we are not capable of recognizing the difficulty of the situation.
• D) because we learn from our previous experiences.

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Definitions:

World Price

The price at which a good is traded on the world market; determined by the world demand and world supply for the good.

Tariff

A Tariff is a tax imposed by a government on imported goods, often used to protect domestic industries from foreign competition.

Opportunity Cost

Giving up the chance to benefit from other opportunities by selecting a specific option.

Dalers

A currency that was used in the past in various countries and territories, including Denmark and the United States.