Prospect theory is based on behavioral economists understanding of how people:
A. React to good things (or gains) and bad (or losses)
B. Make predictions about their future income
C. Search for job-prospects or business prospects
D. Behave under stressful conditions
A. React to good things (or gains) and bad (or losses)
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The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, the consumer's net gain in surplus equals
A) c - f. B) b - f. C) d - f. D) The answer cannot be determined from the information given.
Which of the following is an example of a public good?
a. telephone service b. national defense c. a city-owned bus d. electricity generated by a city-owned public utility
The great Franco-American cheese war of 2009 began with:
A. beef. B. Swiss cheese quotas. C. camembert cheese tariffs. D. cheddar cheese import restrictions.
The economic decisions of central planners often are wrong because they have little understanding of
a. local economic conditions b. bureaucracies c. Karl Marx's theories d. democracy