That most people would prefer to buy meat that is 80% lean rather than meat that is 20% fat is an illustration of the:
A. Anchoring effect
B. Framing effect
C. Confirmation bias
D. Endowment effect
B. Framing effect
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Assuming a competitive world, does your country have an absolute advantage in making pizza? You can get your answer by
a. observing if your country makes more pizza than any other country b. calculating the costs of pizza ingredients in your country c. comparing pizza prices in other countries d. calculating the opportunity cost of a pizza in your country e. looking at your country's terms of trade
Due to the impact of diminishing marginal returns, all costs are fixed in the long run
a. True b. False Indicate whether the statement is true or false
When there is positive inflation
A) the nominal interest rate is approximately equal to the real interest rate. B) the real interest rate is greater than the nominal interest rate. C) the nominal interest rate is greater than the real interest rate. D) the real interest rate is negative.
If the price level increases more rapidly than expected, _____
a. output will decrease b. output will increase c. output will not change d. real wages will increase e. unemployment will increase