Uninformed Individuals Tend to ________ the Precision of Their Knowledge

question 18

Multiple Choice

Uninformed individuals tend to ________ the precision of their knowledge.In finance,we call this presumptuousness the ________ hypothesis.

• A) underestimate; underconfidence
• B) overestimate; overconfidence
• C) underestimate; overconfidence
• D) overestimate; underconfidence

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Marginal Study Time

The additional benefit or improvement in performance obtained from studying for one more unit of time.

Marginal Returns

The additional output or benefit received from producing one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product or service, a crucial concept for making economic decisions.