How might a person who lacks self-control behave differently than a rational consumer?
a. He would not try to maximize his marginal utility.
b. He would overvalue the opinions of his friends.
c. He would discount the future value of behaviors.
d. He would be biased by the information he hears first.
c. He would discount the future value of behaviors.
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Measuring expenditures and income with the price level held constant, so that any changes in these values represent changes in the actual amount of goods, services, and income is denoted in ________ terms
A) nominal B) real C) constant dollar D) all of the above
In the short run, a surplus federal budget _____
a. reduces national saving b. boosts domestic saving c. stimulates aggregate demand d. promotes economic growth in the long run e. increases the federal debt
Persons who argue that monetary and fiscal policy should be deliberately used to smooth out the business cycle are called
A) activists. B) disciples. C) nonactivists. D) controllers.
If the price elasticity of demand is 0.4, a 5 percent increase in price will quantity demanded to fall by 2 percent.
Answer the following statement true (T) or false (F)