People Not Only Find Confirmation for What They Expect to See

question 31

Multiple Choice

People not only find confirmation for what they expect to see but also tend to overestimate how often they are right. This is referred to as ____.

• A)intervention
• B)the illusory correlation
• C)the self-fulfilling prophecy
• D)misattribution

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Definitions:

Administrative Costs

The resources used (which is a cost) by government to collect the tax, and by taxpayers to pay it as well as to evade it, over and above the amount of the tax.

Inefficiency

A scenario where resources are not used optimally, leading to wasted potential output or outcomes that do not maximize societal welfare.

Progressive

Refers to a tax system where the tax rates increase as the taxable amount increases, often aimed at reducing inequality.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved.