Tom Believes That He Is Exceptionally Insightful When It Comes

question 128

Multiple Choice

Tom believes that he is exceptionally insightful when it comes to understanding and helping others. In fact, he brags that he is probably one in a million when it comes to insight. Assuming Tom is not quite as special as he thinks he is, Tom's perception of himself most likely reflects the ____ effect.

• A)external attribution
• B)illusory correlation
• C)false uniqueness
• D)false consensus

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Definitions:

Consumer Surplus

The gap between the aggregate amount buyers are willing and able to spend for a good or service, versus what they actually spend.

Property Rights

The legally guaranteed rights to own, use, and dispose of assets, including physical and intellectual property.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits received by all parties involved.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, resulting in market stability.