In a survey of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to
A) go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store.
B) raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.
C) sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair.
D) remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there were no other hardware stores in the same area.
Answer: B
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A) a ceteris paribus change. B) an efficient change. C) a marginal change. D) an average change.
If U.S. official reserves increase, the
A) current account is positive. B) balance of payments increases. C) official settlements account balance is negative. D) current account increases. E) official settlements account balance is positive.
Which of the following are TRUE regarding "positive" statements?
I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their accuracy. A) I and II B) II and III C) I and III D) I, II and III
The features of the M-Form of firm organization are
a. divisions can respond more easily to change b. it is difficult to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained