People sometimes try to limit the options they have available. This
a. is consistent with rational economic behavior.
b. can be explained by behavioral economic analysis
c. explains why demand curves are sometimes vertical
d. violates the assumption of transitive preferences
e. occurs when income and substitution effects cancel out.
B
You might also like to view...
Refer to the above table. Which of the following statements is correct?
A) The table follows economic principles because in an increasing cost industry, increases in a variable input will lead to increase in output. B) The table does not follow economic principles because in an increasing cost industry, increases in a variable input will lead to decrease in output. C) The table follows economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to a decrease in the marginal physical product. D) The table does not follow economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to an increase in the marginal physical product.
A risk averse individual
a. values a lottery at more than its expected value b. values a lottery at exactly its expected value c. values a lottery at less than its expected value d. tends to play lots of lotteries
A recent college graduate who is looking for her first job would be considered _____
a. a discouraged worker b. underemployed c. overemployed d. unemployed e. not in the labor force
Which of the following is the correct formula for determining the unemployment rate?
a. [(The number of unemployed, working-age people seeking work)/(The number of people in the labor force)] x 100. b. (The total number of employed / The number of people in the labor force) x 100. c. (The total number of unemployed / The number of working-age people seeking work) x 100. d. (The number of people in the labor force / The number of working-age people seeking work) x 100.