What is behavioral economics?
A) the study of how people make wealth-maximizing decisions
B) the study of how people behave in the face of scarcity
C) the study of situations in which people act in ways that are not economically rational
D) the study of how people make decisions at the margin
Answer: C
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Use the following table to answer the next question.Labor Compensation (Wages and Benefits)$9,560 billionProprietors' Income$615 billionNet Interest$1,024 billionCorporate Profits$2,049 billionRent$409 billionWhat is the value of national income?
A. $13,248 billion B. $13,042 billion C. $13,657 billion D. $12,427 billion
When government purchases are increased, the amount of the increase in aggregate demand primarily depends on
A. the size of the multiplier. B. the average propensity to consume. C. income taxes. D. exchange rates.
About _____ of the world's population live in LDCs.
Fill in the blank(s) with the appropriate word(s).
Critics of advertising argue that in some markets advertising may
a. attract products of lower quality into the market. b. attract less informed buyers into the market. c. decrease elasticity of demand allowing firms to charge a larger markup over marginal cost. d. enhance competition in markets to an unnecessary degree.