Neoclassical economists generally believe which of the following about human behavior?
A. While individuals attempt to make rational decisions, poor computational skills often lead to
systematic errors.
B. People care a lot about fairness and are often willing to sacrifice some of their own well-
being to treat others fairly.
C. When individuals make mistakes in decision making, they adjust to these errors and rarely
repeat them.
D. When individuals are selfless and act for the good of others, the invisible hand guides the
collective behaviors to promote the good of society.
Answer: C
You might also like to view...
Sophia just bought shares of IBM stock for $20,000 and paid a $300 commission to her broker. How did this impact GDP?
A) GDP increased by $20,300 B) GDP increased by $300 C) GDP increased by $20,000 D) GDP increased by $19,700 E) it had no impact on GDP
If average labor productivity in two countries is the same, average living standards will be higher in the country with:
A. the smaller population. B. the higher share of population employed. C. the lower share of population employed. D. the larger population.
A(n) ________ in U.S. interest rates will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
A classical model of the economy predicts
A. a negative unemployment rate whenever the economy is in equilibrium. B. full employment in the long run. C. cyclical changes in the unemployment rate. D. the same unemployment rates as the Keynesian model.