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In 2007, Which U

question 38

Multiple Choice

In 2007, which U.S.firm showed the first indication of significant problems in the financial sector?

Grasp the economic principle of diminishing marginal utility.

Understand consumer surplus and its implications on consumer satisfaction.

Recognize the impact of different pricing on consumer surplus and utility.

Analyze the concept of consumer rationality in utility theory.

Definitions:

Fundamental Attribution Error

A cognitive bias where people overemphasize personal traits and underestimate situational factors when explaining others' behaviors.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and their failures to external factors.

Self-Fulfilling Prophecy

A belief or expectation that influences behaviors in a way that causes the belief to become a reality.

Projection

A defense mechanism where an individual ascribes their own unacceptable thoughts, feelings, or motives to another person.