People View Themselves and Their Actions Much More Favorably Than

question 7

Multiple Choice

People view themselves and their actions much more favorably than others view them.This is called ________.

• A) bounded rationality
• B) the illusion of superiority
• C) bounded ethicality
• D) the illusion of control

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Definitions:

Government Regulations

The laws and rules established by governments to control or guide specific economic activities or markets.

Lending Standards

The set of criteria used by banks and financial institutions to determine the creditworthiness and eligibility of prospective borrowers.

Competitive Markets

Markets characterized by many buyers and sellers where no single participant can significantly influence the price of goods or services.

Externalities

Effects of a transaction or activity on third parties who are not directly involved, which can be either beneficial (positive externalities) or harmful (negative externalities).