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After taking two years of college economics courses, Lionel thinks he knows enough about business to become a millionaire. Lionel should become more aware of:

a) Confirmation bias
b) Dunning-Kruger effect
c) Anchoring
d) Availability heuristic

1 Answer

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Final answer:

Lionel should become more aware of the Dunning-Kruger effect, which is the tendency for individuals with little expertise in a task to overestimate their own abilities. He should recognize that his perception of his expertise may be inaccurate and consider seeking further learning and experience in business.

Step-by-step explanation:

The cognitive bias that Lionel should become more aware of after taking two years of college economics courses is the Dunning-Kruger effect. This bias refers to the tendency for people with little expertise in a specific task to rate their knowledge higher than others who have more knowledge. It is a common illusion where incompetent individuals overestimate their own abilities.

In Lionel's case, he may think he knows enough about business to become a millionaire, but he should be cautious and recognize that his perception of his expertise may be inaccurate. It takes time and experience to truly build expertise in a subject area. By understanding the Dunning-Kruger effect, Lionel can better assess his knowledge and seek further learning and experience to truly succeed in business.

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