Long-Term Growth in Production in an Economy Can Be Partially

question 74

Multiple Choice

Long-term growth in production in an economy can be partially explained by:

• A)improvements in the rules of the game that facilitate production and exchange.
• B)the peaks and troughs of the business cycle or economic fluctuations.
• C)trade surpluses that lead to accumulations of precious metals.
• D)federal government budget deficits.
• E)a gradual but consistent increase in the price level.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.

Self-serving Bias

A common tendency to attribute one's successes to personal characteristics and failures to external factors.

Just-world Hypothesis

The cognitive bias that assumes that actions always yield morally fair and fitting consequences, essentially that the world is just.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.