Behavioral economists attempt to take into account predictably irrational behavior.
Answer the following statement true (T) or false (F)
True
Behavioral economists believe that using the traditional building blocks to try to explain everything can cause one to miss some predictably irrational behavior.
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Providing a fixed number of workers with additional capital will ________ average labor productivity at a ________ rate.
A. increase; increasing B. decrease; decreasing C. increase; constant D. increase; decreasing
As a result of the 2008-2009 financial crisis and the decrease in GDP in many European economies, we would expect
A) an increase in the demand for U.S. exports and a leftward shift in the demand curve for dollars. B) a decrease in the demand for U.S. exports and a leftward shift in the demand curve for dollars. C) a decrease in the demand for U.S. exports and a rightward shift in the demand curve for dollars. D) a decrease in the demand for U.S. imports and a movement up along the demand curve for dollars.
Compared with a competitive market with the same cost and market demand circumstances, a monopolist has
A. More pressure to reduce costs and more reason to improve quality. B. Less pressure to reduce costs and more reason to improve quality. C. Less pressure to reduce costs and less reason to improve quality. D. More pressure to reduce costs and less reason to improve quality.
In the long run, if some monopolistically competitive firms are earning economic losses then
A) firms will leave the industry. B) raise prices until they earn economic profits. C) they will increase production until marginal costs fall. D) new firms will enter the industry.