Behavioral economists have discovered that
A) transitivity of preferences always holds, even in animals.
B) the law of demand does not hold in controlled experiments.
C) transitivity of preferences does not always hold, especially for young people.
D) reflexivity of preferences is not true.
C
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Christy is a telemarketer. She estimates that this summer, she has a 0.2 probability of earning $10,000, a 0.5 probability of earning $5,000, and a 0.3 probability of earning only $1,000. What is Christy's expected income?
A) $7,256 B) $5,333 C) $4,800 D) $4,000
As part of recent cutbacks, Paul just accepted a 10% cut in pay. Now he brews coffee at home instead of stopping at Starbucks every day. Based on this behavior, we can say home-brewed coffee:
A. is a normal good, and Starbucks coffee is an inferior good for Paul. B. and Starbucks coffee are normal goods for Paul. C. will become a normal good for Paul over time. D. is an inferior good, while Starbucks coffee is a normal good for Paul.
A person's sensitivity to a price change for a good, such as breakfast cereal, depends on all of the following except the
a. price of the good b. cost of producing the good c. person's income d. availability and closeness of substitutes e. time the person has to adjust to the price change
Bloomberg Business sums up the failure of Enron to
A. risky projects in India and the oil price hikes. B. September 11, 2001. C. too much debt. D. flawed organizational design.