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Behavioral economists believe that people:
A) assess current and future options equally well
B) make errors in decision making because of problems such as bad information, but such errors are random and generally not repeated by the same individual
C) often succumb to temptation
D) do not care about fairness, especially if it impairs their ability to get what they want
Explain the relationship between Actual National Income (Y) and Desired Aggregate Expenditure (AE = C + I) and how this creates equilibrium National Income?
Suppose a firm’s production function is given by the following equation: Q = min(5K, 10L). If the firm is using 4 units of capital and 3 units of labor, how much output are they producing? Is this firm operating efficiently? Why or why not?
Are there differences in how the Democratic Party and the Republican Party view the economy? What are the differences if any?
Wheelan (in Naked Economics) states that "the problem with Asian sweatshops is that there are not enough of them." How is Wheelan's statement illustrative of the concept that every market transaction makes all parties better off?
To fully understand how taxes affect economic well-being, we must compare the
What are some of the ways in which evolving technology contributes to the experience of workplace stress? What are some intervention that employee and employers might attempt in order to avoid or mange the stress associated with technology?
Human capital is the. One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society. Other things the same, a country that increases i..
In March of 2009, the Fed bought government securities in the open market. The most likely effect of this policy is:
How has the news media evolved from the nation’s founding to what it is today? Discuss the various functions the news media has in American society. How well do you feel the media carries out these functions?
Which of the following is an example of a good with a high switching cost?
Denise and Christy have the same preferences and incomes. Just as Denise arrived at the theater to see a play, she discovered that she had lost the $20 ticket she had purchased earlier. If both Denise and Christy are rational and both have enough mon..
If, at the current price, there is a surplus of a good, then
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