One Day, Ethan Had "A Feeling" That He Was Going

question 16

Multiple Choice

One day, Ethan had "a feeling" that he was going to get a phone call from a long-lost friend. That evening, an old high school classmate called, inviting him to attend a class reunion. Now Ethan is telling everyone that he is psychic. According to your textbook, which cognitive bias provides the BEST explanation for Ethan's belief?

• A)the overestimation effect
• B)the belief-bias effect
• C)confirmation bias
• D)the fallacy of positive instances

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Definitions:

Short-run Supply Curve

A graphical representation showing the relation between the price of a product and the quantity of the product that a firm is willing and able to sell, given fixed resources.

MC Curve

A graph that shows the relationship between the marginal cost and the quantity of output produced, typically upward sloping.

Shut-down Price

The price level at which a firm ceases its operations because the revenue received does not cover the variable costs, making it financially unsustainable to continue.

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output supplied by all producers in the market.