Errors That People Make Over and Over and That Result

question 4

Multiple Choice

Errors that people make over and over and that result in poor decision making are known as:

• A)systematic errors
• B)representative bias
• C)confirmation bias
• D)illusion of control and overconfidence bias
• E)recency effect

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Definitions:

Macroeconomic Activity

The total economic activities and interactions at a national or global level, including production, consumption, saving, and investment.

Nondiscretionary Fiscal Policy

Government policies related to taxation and spending that automatically adjust without the need for explicit action by policy makers.

Legislative Changes

Modifications or alterations to existing laws enacted by a legislative body that can affect various sectors of the economy or society.

Budget Deficit

The financial situation in which a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.