Participants in an Experiment Heard a Description of the Military

question 75

Multiple Choice

Participants in an experiment heard a description of the military conflicts between the British and the Gurkas in India. Some were told the true outcome and others were told false outcomes. All participants overestimated their ability to have predicted the outcome that they believed to be true. This is known as

• A) confabulation.
• B) repression.
• C) hindsight bias.
• D) procedural memory.

---

Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Economic Profits

The surplus remaining after total costs are deducted from total revenue, factoring in both explicit and opportunity costs.

Normal Rate

Refers to the standard, expected rate in financial or economic contexts, often used as a benchmark.

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.