One aspect of prospect theory is that people tend to
A) be very risk averse to large gains.
B) be very risk averse to losses.
C) love losses more than gains.
D) hate gains regardless of potential losses.
B
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After completing college, Mohamed spent three months looking for a job. During this period, Mohamed would be classified as
A. cyclically unemployed. B. frictionally unemployed. C. structurally unemployed. D. not in the labor force.
Suppose a government is considering imposing either a tariff or a quota on imported grain, and either policy will result in exactly 750 tons of grain being imported. How do these policies differ?
A. The quota will generate revenue for the firms that hold import licenses, while the tariff will generate revenue for the government. B. Domestic production will be higher with the quota than with the tariff. C. The price of grain under the quota will be higher than the price under the tariff. D. The price of grain under the tariff will be higher than the price under the quota.
Identify the six parts of the financial system.
What will be an ideal response?
The law of demand tells us that
a. the quantity demanded increases as price falls b. demand increases because price falls c. people respond to price changes d. demand creates its own supply, meaning that if there's a demand, supply will be created to satisfy it e. demand depends on people having income to satisfy it