How Do Cognitive Biases Involving the Self Contribute to the Goal

question 44

Essay

How do cognitive biases involving the self contribute to the goal of maintaining and enhancing our view of ourselves? Of what value are such biases, and what are the potential consequences of not having them? Describe two self-biases, providing research evidence that demonstrates their effects.

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Definitions:

Interest Rate

The percentage rate at which interest is charged on a loan to the borrower, often expressed as an annual figure relative to the outstanding loan sum.

Present Value

The modern-day worth of a forthcoming sum of money or flow of cash payments, using a set rate of return for calculation.

Received

The action of being given or awarded something.

Marginal Product

the increase in output resulting from the use of one more unit of a variable input, holding all other inputs constant.