-The Opportunity Cost of an Extra Acoustic Guitar for Glenn

question 106

Multiple Choice

-The opportunity cost of an extra acoustic guitar for Glenn is

• A) 0.8 fewer electric guitars.
• B) 7 fewer electric guitars.
• C) 0.14 more electric guitars.
• D) equal to Glenn's opportunity cost of an extra electric guitar.
• E) 8 fewer electric guitars.

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Definitions:

Illusory Correlation

The perception of a relationship between two variables when none exists, often leading to confirmation of erroneous beliefs.

Magical Thinking

The belief that one's thoughts, words, or actions can influence the outcome of events in the physical world in a manner not governed by the laws of physics or logic.

Theory Perseverance

The persistence of one's initial beliefs, even in the face of contradicting evidence or after the evidence for their foundation has been discredited.

Availability Heuristic

The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision, often leading to bias.