Regarding people's preferences, behavioral economists observe that these preferences are:
A. Stable and not affected by context
B. Fluid and easily influenced by framing
C. Readily and accurately predictable
D. Consistent from one period to the next
B. Fluid and easily influenced by framing
You might also like to view...
A tax meant to counter the effect of a negative externality is called:
A. a Coase tax. B. a Pigovian tax. C. an external tax. D. a social benefit tax.
If the short-run Phillips curve was a straight line with a very steep slope, the inflation costs of reducing unemployment: a. are fairly low
b. are fairly high. c. depend on the current rate of inflation. d. rises as the economy approaches full employment.
When the Federal Reserve uses open-market operations to lower the Federal funds rate several times over a year, it is pursuing:
a. A Taylor rule policy b. A restrictive money policy c. A prime interest rate policy d. An expansionary money policy
A firm has a Lerner index of 0.75 and charges a price of $150. The firm's marginal cost is:
A. $112.50. B. $0. C. $37.50. D. There is not sufficient information to determine the firm's marginal cost.