Economists believe that people who force themselves to always eat everything on their plate at a restaurant, regardless of how full they might feel, likely do so because:
A. they gain negative utility from insulting the chef.
B. they overvalue the opportunity costs of their health and time involved with eating food they don't really want.
C. they include the sunk cost of their meals in making their decision.
D. they undervalue the true benefit of eating too much.
C. they include the sunk cost of their meals in making their decision.
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Higher than expected inflation rate: a. shifts short-run Phillips curve to the right
b. shifts long-run Phillips curve to the right. c. shifts both short-run and long-run Phillips curve to the right. d. shifts short-run Phillips curve to the left.
?Exhibit 16-4 Macro AD/AS Model
As shown in Exhibit 16A-4, assume the marginal propensity to consume equals 0.80. Using discretionary fiscal policy, federal government spending should be _________ in order to restore the economy from E1to full employment.
A. increased by $1.6 trillion B. decreased by $1.6 trillion C. increased by $.20 trillion D. increased by $.20 trillion
Which of the following is not part of an oligopolist's business strategy?
A) determining the amount of advertising a new product needs B) deciding the level of total output of a new product C) meeting worker health and safety standards required of all firms D) setting the product's price after considering what rivals will do
William Nordhaus' depletion hypothesis
A) is an attempt to explain the drop in the multifactor productivity growth rate between 1913 and 1964. B) suggests that depletion of natural resources may explain part of the drop in multifactor productivity growth. C) suggests that a drop in the rate at which new inventions are made may explain part of the drop in multifactor productivity. D) B and C E) all of the above