Answer the following statement true (T) or false (F)
1) A key difference between neoclassical economics and behavioral economics is that in
behavioral economics context affects preferences.
2) Behavioral economics observes that people generally do not act according to their self-
interest.
3) Neoclassical economics and behavioral economics both recognize that people make errors in
their decision making.
4) According to behavioral economics, temptation to make harmful decisions can be overcome by presenting decision makers with better information and more options.
1) T
2) F
3) T
4) F
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In the United States the poorest 20 percent of households receive about ________ of total income
A) 1 percent B) 4 percent C) 10 percent D) 15 percent
If a nation's government determines that consumption of cigarettes should be discouraged, then this means that the government has judged cigarettes to be a(n)
A) government-sponsored good. B) exclusive good. C) government-inhibited good. D) public good.
The Clayton Act:
a. was passed in 1890. b. created the Federal Trade Commission. c. abolished antitrust policy in this country. d. attempted to give explicit content to what formed an antitrust violation. e. made mergers between corporations illegal.
Measuring the effects of labor immigration shows:
a. that as workers move, they disrupt their families and cause huge costs in the recipient nation. b. that most immigrants spend months trying to find work. c. that immigration benefits the recipient nation by raising the marginal product of capital, expanding laborintensive production, and lowering prices of laborintensive goods. d. that immigration is very harmful to the host nation because of a huge increase in the unemployment rate