Steve Submitted a Proposal to His Boss for a New

question 97

Multiple Choice

Steve submitted a proposal to his boss for a new piece of equipment that his department needed.He felt sure that his proposal would be approved even though it was a difficult year financially for his company,and he predicted that it would be approved.Unfortunately,to his surprise,his proposal was rejected.Steve has exhibited

• A)anchoring bias.
• B)confirmation bias.
• C)randomness error.
• D)overconfidence bias.
• E)escalation of commitment.

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Definitions:

Closed Economy

An economic system that does not engage in international trade with other countries and relies solely on its own resources and internal market.

Budget Surplus

The condition where a government's revenues exceed its expenditures over a specific period of time.

Public Saving

The difference between government receipts and government spending, representing the amount the government either saves or borrows.

Positive

In economics, referring to statements or analyses that are fact-based and describe the world as it is, rather than how it should be.