The Tendency for People to Exaggerate the Importance of Their

question 286

Multiple Choice

The tendency for people to exaggerate the importance of their contributions in shaping events is termed ________.

• A) bias
• B) egocentricity
• C) prejudice
• D) self-esteem fallacy

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for goods or services that are made by a business as part of its operations.

Total Economic Costs

The sum of all costs associated with the production of a good or service, including both explicit (direct) costs and implicit (indirect or opportunity) costs.

Implicit Cost

The opportunity costs of using resources that a firm already owns to make its products, as opposed to renting, selling, or using them in another way.

Forgone Rent

The potential income lost by choosing to use a property or resource in a way that is not financially optimal or by not using it at all.