According to behavioral economics:
A. gains are felt more intensely than losses.
B. each successive unit of loss is equal in its marginal disutility.
C. each successive unit of loss hurts, but less than the previous unit.
D. each successive unit of loss hurts, and more than the previous unit.
Answer: C
You might also like to view...
What is one specific economic situation that a balanced budget amendment would create?
A) It would prevent deficits during peacetime. B) It would curtail inflation. C) It would forbid budget surpluses. D) It would prevent a recession.
Which of the following best describes the idea of a political business cycle?
a. Politicians have a bias to cut taxes and increase government spending. b. Special interests result in alternating federal deficits. c. Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections. d. Good intentions of politicians influence the business cycle.
The Environmental Protection Agency was established by the ______.
a. Endangered Species Act of 1973 b. Environment Act of 1986 c. Clean Air Act of 1970 d. Civil Rights Act of 1964
Each of the following would decrease the supply of U.S. dollars, shifting the supply curve for dollars to the left, EXCEPT:
A. a decreased preference for foreign-made goods. B. a decrease in the real interest rate on foreign assets. C. a depreciation of the U.S. dollar relative to other currencies. D. a decrease in U.S. real GDP.