When Ainslie Did Poorly on the Physics Midterm Exam, She

question 27

Multiple Choice

When Ainslie did poorly on the physics midterm exam, she blamed her low score on the unfairness of the exam and the lousy professor. But when the final grades in the course were curved and she received an A minus, she concluded that she had a real talent and mental capacity for logical, scientific thinking. This example illustrates:

• A) the fundamental attribution error.
• B) hindsight bias.
• C) blaming the victim.
• D) the self-serving bias.

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Definitions:

Market Power

The ability of a company or group of companies to control prices and total market output in an industry or sector.

Elastic Demand

Describes a market scenario where the demand for a product significantly changes in response to changes in the price of that product.

Less Elastic

Less elastic refers to a demand or supply that is relatively unresponsive to changes in price compared to a perfectly elastic curve.

Increase Price

A decision by a supplier or manufacturer to raise the cost at which goods or services are sold.