Figure 11-4 -Refer to Figure 11-4.The Movement from E to B to to B

question 131

Multiple Choice

Figure 11-4
-Refer to Figure 11-4.The movement from E to B to D in the figure above illustrates

• A)an improvement in technology.
• B)a decline in capital per worker.
• C)diminishing returns to capital.
• D)diminishing returns to labor.

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Definitions:

Recency Errors

A cognitive bias that occurs when the most recent information or experiences have a disproportionate impact on one's memory or evaluation of a situation.

The Halo Effect

A cognitive bias where an observer's overall impression of a person, company, brand, or product influences their feelings and thoughts about that entity's character or properties.

Leniency Errors

A bias in assessment or judgment processes where the evaluator tends to consistently rate others more favorably than warranted.

Interviewer Illusion

A cognitive bias occurring when interviewers overestimate their ability to evaluate interviewees accurately.