Behavioral economists suggest that the reason why many consumers tend to stick to one brand in things that they often buy, like food items, is people's tendency to have the:
A. Anchoring effect
B. Mental accounting effect
C. Status quo bias
D. Confirmation bias
C. Status quo bias
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The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage
In reality we do not see complete specialization in production. State three reasons why this is case.
If at the current level of product-specific service, consumers' value at $12 and the cost of retailers to provide the services is $12, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is exactly double the current level B) the profit-maximizing level of profit-maximizing services is greater than the current level C) the profit-maximizing level of profit-maximizing services is less than the current level D) the profit-maximizing amount of product-specific services is being offered.
A, B, and C have the following preferences for fruits: A: apples > bananas > peaches B: bananas > apples > peaches C: apples > peaches > bananas Find the median voter's preference, if any, using a two-phase election
a. Preferences are intransitive. b. Apples c. Bananas d. Peaches
A bank with a leverage ratio of 9 to 1 has
A) $9 in assets for every $1 in liabilities. B) $9 in assets for every $1 in capital. C) $1 in assets for every $9 in capital. D) $1 in assets for every $9 in liabilities.