The So-Called Illusory Correlation Can Most Directly Help Explain ____

question 78

Multiple Choice

The so-called illusory correlation can most directly help explain ____.

• A)why people tend to think that they are "better than average" on most traits and abilities
• B)why people tend to overestimate the degree to which members of minority groups engage in criminal behaviors
• C)why people tend to continue to gamble even when they have hit an "unlucky streak"
• D)why people tend to assume that it is more common for people to die from plane crashes than from lung cancer

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Definitions:

Concentration Ratio

A measure used in economics to assess the degree to which a market or industry is dominated by the top firms.

Market Shares

The percentage of an industry's sales that is earned by a particular company over a certain time period.

Monopolistically Competitive

Characterizing a market environment where several sellers offer differentiated products, resulting in non-price competitive strategies.

Price-Taker

An economic agent (e.g., a firm or consumer) that has no control over the market price and must accept prices as given.