In behavioral economics, salience is best exemplified by
A) consumers responding differently when posted prices increase rather than when prices increase because of sales tax increases.
B) consumers responding the same regardless of how prices change.
C) the end of a controlled experiment.
D) consumers responding differently when income increases permanently rather than temporarily.
A
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If the cross elasticity of demand between coffee and tea is positive, an increase in the price of tea will shift the demand curve for
A) tea rightward. B) tea leftward. C) coffee rightward. D) coffee leftward.
In economics, tangible merchandise is referred to as
A) invention. B) human capital. C) goods. D) services.
The profit-maximizing quantity of labor equates the marginal product of labor with
A) total factor productivity. B) the marginal product of capital. C) the real wage. D) the average product of labor.