The Tendency,after an Event Has Occurred,to Overestimate One's Ability to Have

question 101

Multiple Choice

The tendency,after an event has occurred,to overestimate one's ability to have foreseen or predicted the outcome is called

• A) the other-gender effect.
• B) scapegoating.
• C) hindsight bias.
• D) unconscious patronization.

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Definitions:

Diminishing Marginal Utility

Diminishing marginal utility is the principle stating that as a person consumes more of a good, the satisfaction gained from consuming each additional unit decreases.

Income Effect

Refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in the prices of goods, leading consumers to replace more expensive items with cheaper alternatives.

Demand

The desire and ability of consumers to purchase goods and services at different prices, reflecting how much of a product consumers are willing and able to buy.