Maintaining Our Beliefs Even in the Face of Contradictory Information

question 43

Multiple Choice

Maintaining our beliefs even in the face of contradictory information is known as _________.

• A) belief perseverance.
• B) confirmation bias.
• C) correspondence bias.
• D) self-fulfilling prophecy

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Definitions:

Contribution Margin Ratio

The percentage of each sale that remains after variable costs are deducted, indicating how much revenue is contributing to fixed costs and profit.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales, reflecting the proportion of fixed costs in the company's cost structure.

Break-even Point

The point where the amount of goods produced or sold matches the total expenses, leading to neither a profit nor a loss.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and to generate profit.