Which of the following attempts to go beyond the basic assumptions of the traditional economic model and augment it with findings from psychology to gain a greater understanding of complex consumer behavior?
a. behavioral economists
b. public choice economists
c. economic sociologists
d. economic psychologists
a. behavioral economists
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Which of the following represents the chain of causation for expansionary policy?
A. An increase in real GDP increases investment, which increases the money supply, which reduces the interest rate. B. An increase in the money supply reduces the interest rate, which increases investment, which increases real GDP. C. An increase in investment increases the interest rate, which increases the money supply, which increases real GDP. D. An increase in the money supply increases investment, which increases the interest rate, which increases real GDP.
Jennifer's Bakery Shop produces baked goods in a perfectly competitive market. If Jennifer decides to produce her 100th batch of cookies, the marginal cost is $120. She can sell this batch of cookies at a market price of $110
To maximize her profit, Jennifer should A) not produce this additional batch. B) produce this batch of cookies because they will help lower her average fixed cost. C) charge $120 for this batch. D) shut down. E) produce this batch of cookies because their MR exceeds their MC.
Profit maximization occurs where
A) each factor is used up to the point where its marginal revenue product is equal to its marginal factor cost. B) each factor is used up to the point where its marginal physical product is equal to its marginal factor cost. C) average variable cost equals marginal cost. D) average variable cost equals average total cost.
A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ____ and the quantity of corn ____. Question 4 options:
A. falls; increases B. falls; does not change C. falls; decreases D. rises; decreases E. rises; increases