Once We Know the Outcome of an Event, We Have

question 18

Multiple Choice

Once we know the outcome of an event, we have the sense that we knew all along that things would turn out as they did. The term for this phenomenon is:

• A) the hindsight bias
• B) commonsense social psychology
• C) the self-fulfilling prophecy
• D) the "déjà vu" effect

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Definitions:

Keynesian Model

An economic theory stating that active government intervention is necessary to manage economic fluctuations and stimulate demand during downturns.

Money Supply

The sum of all funds available in an economy, including cash, coins, and checking and savings account balances, at a particular point in time.

Foreign Exports

Products or services that are manufactured in one nation and purchased by consumers in a different country.

Say's Law

Say's Law, also known as the law of markets, is an economic principle which suggests that production creates its own demand, positing that a supply of goods will ultimately lead to the creation of an equivalent demand.