Because of a Boom in Technology Stocks in the Late

question 18

Multiple Choice

Because of a boom in technology stocks in the late 1990s, even novice investors experience huge growth in their portfolios. As technology stocks kept going up, many investors believe that their successes was due to their stock-picking ability rather than unsustainable growth in one sector of the economy. The result for many was huge losses. This scenario illustrates the concept of

• A)availability bias.
• B)representativeness bias.
• C)anchoring-and-adjustment bias.
• D)confirmation bias.
• E)overconfidence bias.

Discern the distinction between normal goods and inferior goods in relation to income changes.

Comprehend the impact of technological advancements and production costs on supply.

Understand how changes in income affect demand for different types of goods.

Understand the relationship between quantity demanded and quantity supplied and how it affects market equilibrium.

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Definitions:

Declining A Job Offer

The action of refusing a job proposal politely and professionally, often after considering various aspects of the offer.

Persuasive Communication

The art of using messages designed to influence the attitudes, beliefs, or actions of others in a desired direction.

Open-Ended Interview

An interview method where questions are designed to elicit detailed and exploratory responses, rather than yes or no answers.

Conversational Tone

A style of writing or speaking that is informal, friendly, and similar to everyday spoken language.