The process by which people isolate purchases and fail to consider all consumption options simultaneously is known as:
A. framing.
B. mental accounting.
C. anchoring.
D. the endowment effect.
Answer: B
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Holding other factors constant, if the income tax is replaced with a consumption tax so that saving is not taxed, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; increase B. increase; not change C. decrease; increase D. increase; decrease
In 2005, which union organization was formed out of the AFL-CIO membership?
A) National Brotherhood of Teamsters B) Service Employees International Union C) American Federation of Workers D) Change to Win
The potential adult work force includes:
A) non-institutional population 13 years and over plus people on active duty in the military. B) non-institutional population 16 years and over plus people on active duty in the military. C) non-institutional population 18 years and over. D) civilian non-institutional population 16 years and over.
When people use all the relevant data and principles of economics to forecast inflation, they are making
A) what is called a "data-based forecast." B) an always accurate forecast. C) a mistake. D) what is called a "rational expectation." E) an exaggerated forecast.