Hindsight Bias Is the Process of Altering Memories of the Past

question 318

True/False

Hindsight bias is the process of altering memories of the past so that they are more in line with accurate information that is learned later-the "Monday morning quarterback" effect.

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Definitions:

Implicit Costs

Indirect, non-monetary expenses involved in pursuing an activity or decision, often reflected as the opportunity cost of using resources.

Explicit Costs

Cash disbursements to external parties for the operation costs of a business, like employee salaries, rental expenses, and raw materials.

Explicit Cost

The monetary payment made by a firm to an outsider to obtain a resource.

Accounting Profits

The net income a company has after subtracting all costs and expenses from total revenue, as recognized in financial statements.