Answer the following statements true (T) or false (F)
1. Behavioral economics developed as a field of study that looks into how people make rational decisions based on self-interest.
2. One major point of disagreement between neoclassical economics and behavioral economics is the assumption of rationality.
3. Neoclassical economics and behavioral economics are similar in the assumption that people are capable of making accurate, sometimes complex, calculations with respect to their utility-maximizing decisions.
4. Neoclassical economics focuses on predicting behavior of economic agents, whereas behavioral economics focuses on the mental processes involved in decision-making.
5. Behavioral economics hopes to eventually fully replace the neoclassical economic model.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Refer to Table 9-12. Which country has an absolute advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country
The OLS estimator for the multiple regression model in matrix form is
A) (X'X)-1X'Y B) X(X'X)-1X' - PX C) (X'X)-1X'U D) (X?-1X)-1X?-1Y
The larger the proportion of income spent on a product, other things equal, the: a. more unit elastic is a consumer's demand
b. more elastic is a consumer's demand. c. more inelastic is a consumer's demand. d. more vertical is a consumer's demand curve.
the banking system in the United States creates money through the combination of excess reserves and
What will be an ideal response?