The Type of Cognitive Error That Involves Thinking and Interpreting

question 42

Multiple Choice

The type of cognitive error that involves thinking and interpreting in all-or-nothing terms, or in categorising experiences in either/or extremes, is known as:

• A) magnification and exaggeration.
• B) polarised thinking.
• C) arbitrary inference.
• D) over-generalisation.

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Definitions:

Used Cars

Second-hand vehicles that were once registered and utilized by one or more prior owners.

Marginal Products

The extra output that is produced by using one more unit of a particular input, holding all other inputs constant.

Separating Equilibrium

Separating equilibrium occurs in a game or market when different types of participants choose distinctly different strategies or products, revealing their type.

Pooling Equilibrium

A situation in a market where all agents, regardless of their type or quality, provide the same signal, making it impossible to distinguish between them based on that signal alone.