Dan Was Certain That His Upcoming Economics Test Would Be

question 166

Multiple Choice

Dan was certain that his upcoming economics test would be so easy that he could wait to study until the night before and still do well on the exam. When he cracked open his book and notes the night before the exam, he realized he should've started studying earlier. According to behavioral economics, Dan's error was caused primarily by

• A)a planning fallacy.
• B)an overconfidence effect.
• C)framing effects.
• D)hindsight bias.

Grasp the concept of Marginal Revenue Product (MRP) and its significance in hiring decisions.

Recognize the impact of complementary and substitute resources on each other's demand.

Understand the principles of least-cost combination of resources and its effects on profit maximization.

Comprehend the decision-making process regarding employment of resources based on their marginal costs and marginal revenue products.

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Definitions:

Learned Response

A behavior developed as the result of conditioning, where an individual learns to respond in a certain way to a specific stimulus.

CS (Conditioned Stimulus)

A stimulus that was neutral but becomes associated with an unconditioned stimulus to elicit a conditioned response in classical conditioning.

Classical Conditioning

A learning process that creates associations between a naturally occurring stimulus and a previously neutral stimulus.

Acquisition

In learning theory, the process of gaining new information and incorporating it into one's knowledge base.