When investors follow a "herd instinct," they make decisions:
A. based on the sound logic of a group, rather than the individual.
B. based on emotion, not objective information.
C. based on hearsay, not objective information.
D. as a group, inflating the prices of goods somewhat arbitrarily.
Answer: B
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The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased
a. True b. False Indicate whether the statement is true or false
Historically, stocks have offered higher rates of return than bonds
a. True b. False Indicate whether the statement is true or false
Economists like Hernando de Soto feel that a ________ is the key to economic development.
A. stable currency B. strong titling system C. strong currency D. strong national defense
Which of the following is true?
A) Changes in personal costs and benefits will exert a predictable influence on the choices of people. B) If the intentions behind a policy are good, you can be assured that the outcome will be desirable. C) If a good is provided free to an individual by government, its production will not consume valuable scarce resources. D) If one individual gains from an economic activity, then someone else must lose.