Which of the following statements is correct?
A)Based on studies of human decision making, most people are overconfident in their own abilities.
B)Arrow's impossibility theorem disproves the median voter theorem.
C)Romantic gifts are an example of adverse selection.
D)An efficiency wage encourages workers to shirk.

Question

Quizplus · Accepted Answer

Studies have shown that most people tend to overestimate their abilities and make decisions based on overconfidence. This is known as the overconfidence bias, which is a common cognitive bias in decision-making.

Which of the Following Statements Is Correct