Seeking Out Information That Supports Our Beliefs About What We

question 5

Multiple Choice

Seeking out information that supports our beliefs about what we already believe is called the:

• A)hindsight bias.
• B)confirmation bias.
• C)overconfidence phenomenon.
• D)self-fulfilling prophecy.

Understand the concept of cost curves and cost behavior in firms.

Analyze and calculate average fixed, variable, and total costs.

Determine how production quantities affect cost measures.

Recognize the relationship between short-run and long-run average total costs.

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished response after a period without exposure to the conditioned stimulus.

Conditioned Stimulus

An initially neutral trigger that, after being paired with an unconditioned stimulus, in time invokes a conditioned response.

Unconditioned Stimulus

A stimulus that inherently and instinctively induces a reaction without the need for previous learning.

Negative Punishment

The removal of a desirable stimulus after a behavior, which decreases the likelihood of the behavior occurring again.