The Exaggeration of Change Between the Past and Present to Make

question 31

Multiple Choice

The exaggeration of change between the past and present to make us look good in retrospect is:

• A)consistency bias.
• B)confirmation bias.
• C)egocentric bias.
• D)fundamental attribution error.

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms in a perfectly competitive market to make zero economic profit, balancing supply and demand.

Maximum Profits

The highest possible financial gain that a business can achieve in a given period, optimizing revenue while minimizing costs.

Long-run Equilibrium

A state in which supply equals demand and all factors of production and markets are in balance, typically considered in the context of perfect competition.

Purely Competitive

A market scenario where products are identical, leading to numerous sellers and buyers where no single entity can influence market prices.