Taking Personal Credit for Our Successes and Blaming Our Failures

question 159

Multiple Choice

Taking personal credit for our successes and blaming our failures on external or situational causes describes the

• A) self-serving bias.
• B) false consensus effect.
• C) availability heuristic.
• D) fundamental attribution error.

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Definitions:

MPC

Marginal Propensity to Consume - the proportion of any additional income that is spent on consumption rather than being saved.

Consumption

The act of using goods and services for personal use, often considered in economic terms as an indicator of economic health.

Disposable Income

Fiscal space for households' spending and saving maneuvers after settling income taxes.

MPS

Marginal Propensity to Save, which measures the fraction of additional income that is saved rather than spent on consumption.