Janae donates $50 to the local Humane Society. This means she can't buy that new pair of shoes, which according to her utility schedule, would have maximized her utility. This example illustrates the ________ aspect of behavioral economics
A) bounded self-interest
B) bounded rationality
C) bounded will-power
D) empowerment effect
A
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Today 1 euro can be purchased for $1.10. This is the
A) spot exchange rate. B) forward exchange rate. C) fixed exchange rate. D) financial exchange rate.
In-kind transfer programs such as Medicaid have increased more rapidly than other welfare programs over the last decade
a. True b. False
The Lucas critique focuses specifically on:
A. the role that economic policymaking has on people's economic behavior. B. the relationship between Fed policy and the money supply. C. the inability to measure economic performance accurately. D. the moving away from fixed exchange rates to flexible exchange rates.
Monopolistic competition is considered inefficient because
a. price exceeds marginal cost. b. output is excessive. c. long-run profits are positive. d. barriers to entry limit the number of firms in the market.