According to the availability heuristic, the more easily we can recall examples of an event:

A. the more we like the event.
B. the less we like the event.
C. the more likely we judge the event to be.
D. the less likely we judge the event to be.


Answer: C

Economics

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Refer to the figure above. The relative price of T (in terms of S) is

A) 2. B) 1/2. C) 500. D) 1000.

Economics

If the central bank is facing the zero bound constraint and announces a higher inflation target,

A) the real interest rate will increase, which will decrease aggregate expenditure. B) the real interest rate will decrease, which will increase aggregate expenditure. C) the nominal interest rate will increase, which will decrease aggregate expenditure. D) the nominal interest rate will decrease, which will increase aggregate expenditure.

Economics

Find the Marginal Rate of Technical Substitution for the following production functions:

a. q = L0.5 K0.5 b. q = L0.5 + K0.5 c. q = min{K,L} d. q = L + K

Economics

Which of the following is not a common resource?

a. clean air b. clean water c. open grazing land d. national defense

Economics