Why is the term “bounded rationality” important to behavioral economists?
a. It disproves many of the principles of the traditional economic model, which have hindered economic progress.
b. It proves that if consumers had unlimited access to information, they would always maximize their utility.
c. It shows that reason alone cannot maximize utility; intuitions, hunches, and split-second decision making are also necessary.
d. It addresses the erroneous assumption that humans have unlimited information-processing capabilities.
d. It addresses the erroneous assumption that humans have unlimited information-processing capabilities.
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Today's industrialized economies
a. have always specialized in capital intensive production b. have always specialized in heavy industry c. began their industrialization in labor intensive production d. began their industrialization in heavy industry then moved into light industry e. none of the above
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to real GDP and the monetary base in the context of the Three-Sector-Model? a. Real GDP rises and monetary base rises
b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Give the approximate importance of productivity as a source of economic growth in the United States and list the various sources which account for this productivity growth and their relative importance
Please provide the best answer for the statement.
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. The ________ haircut is $16.
A. profit-maximizing price for a B. profit from each C. average total cost of a D. marginal cost of a