What do behavioral economics and neuroeconomics seek to achieve?
What will be an ideal response?
Behavioral economics and neuroeconomics seek to explain why we do not always make rational economic decisions. Behavioral economists study how the bounded limitations they study affect people's decisions so that not all decisions are the consequence of rational behavior. Neuroeconomists study how the brain works to make decisions so that neuroeconomists have a better understanding of the decisions people make.
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A minimum wage set above the equilibrium wage will ________ the quantity of labor demanded and ________ the quantity of labor supplied
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) not change; not change
Everything else held constant, if aggregate output is to the ________ of the IS curve, then there is an excess demand of goods which will cause aggregate output to ________
A) right; fall B) right; rise C) left; fall D) left; rise
Barriers that prevent the entry of new firms may arise because: a. economies of scale exist over a substantial range of industry demand. b. marginal revenue is less than average total cost
c. the government protects some firms from competition. d. of both (a) and (c).
Monopolistic competition may lead to each of the following except
A. too many firms in the industry. B. zero economic profits in the long run. C. a price that is above the ATC curve in the long run. D. non-price competition.