Gabriel Participated in a Study Where He Was Given an IQ

question 96

Multiple Choice

Gabriel participated in a study where he was given an IQ test described as an excellent predictor of future academic and financial success.Gabriel performed poorly on the test.Gabriel is likely to attribute his low scores to

• A) bad luck, thereby misapplying the representativeness heuristic.
• B) the invalidity of the test, thereby protecting his self-esteem.
• C) unclear instructions, thereby making the fundamental attribution error.
• D) his own ability, thereby demonstrating the actor-observer bias.

---

Definitions:

Voting Common Stock

A type of equity security that grants the holder the right to vote on corporate matters and receive dividends.

Treasury Stock Approach

A method of accounting for repurchased shares of a company's own stock, treating them as treasury stock and reducing the company's equity.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable to the parent company, representing outside investors' ownership.

Net Income

The total earnings of a company after subtracting all expenses from revenue.