A Good Is Produced by a Firm in 2007,added to the Firm's

question 181

Multiple Choice

A good is produced by a firm in 2007,added to the firm's inventory in 2007,and sold to a household in 2008.As a result,on net,

• A) 2007 GDP increased and 2008 GDP decreased.
• B) 2007 GDP decreased and 2008 GDP increased.
• C) 2007 GDP did not change and 2008 GDP increased.
• D) 2007 GDP increased and 2008 GDP did not change.

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Definitions:

Reconstruction Bias

a type of cognitive bias that involves memory errors in which individuals may add or omit details in their recollection of events.

Overconfidence Bias

The tendency to hold a subjective belief unreasonably confidently, making someone believe their ability, or the accuracy of their information, is higher than it actually is.

Confirmation Bias

The bias towards finding, interpreting, selecting, and recollecting evidence in ways that validate one's prior beliefs or notions.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "I-knew-it-all-along" effect.