Assuming that people follow enlightened self-interest allows behavioral economists to create a single clear-cut model that can be applied across many different contexts.
Answer the following statement true (T) or false (F)
False
Behavioral models depend on the specific context of the choices involved. This means that models often can be applied only to one situation and must be changed for future analysis.
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A simultaneous decrease in the demand and the supply of good X always leads to a decrease in the price of good X
Indicate whether the statement is true or false
The nominal interest rate is 5 percent and the real interest rate is 3 percent. What is the inflation rate?
a. 8 percent b. 15 percent c. 2 percent d. 1.7 percent
Which of the following is most likely to increase the market wage rate in a job category?
a. The work is widely viewed as safe and not stressful. b. The job requires employees to move from city to city quite often. c. The employer provides a generous pension plan. d. The job is widely viewed as interesting and prestigious
A decrease in disposable income causes a shift in the consumption function.
Answer the following statement true (T) or false (F)