Jim Who Scored Less in a Subject Regretted for Not

question 113

Multiple Choice

Jim who scored less in a subject regretted for not having studied sufficiently and wished he could have been more serious during his exams. This is an example of

• A) a representative heuristic.
• B) counterfactual thinking.
• C) an illusory correlation.
• D) the overconfidence phenomenon.

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Definitions:

Marginal Rate Of Technical Substitution

The rate at which one input can be substituted for another input while keeping the level of output constant.

Marginal Rate Of Substitution

The rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.

North American Free Trade Agreement

A trade agreement among the United States, Canada, and Mexico to reduce trade barriers and promote economic exchange.

Efficient Equilibrium

A state of balance in a market where resources are allocated in the most efficient way possible, with no room for welfare improvement without making someone else worse off.