Suppose Danielle receives the highest grade in the class on the first exam in her economics course. Regression to the mean implies that Danielle:
A. is likely to get an A in the class.
B. isn't likely to do as well on the second exam.
C. is likely to do even better on the second exam.
D. is unlikely to forget the material she studied for the exam.
Answer: B
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The difference between the market price of a new car used by a firm and the market price of the same car one year later is known as
A) economic depreciation. B) physical depreciation. C) economic deterioration. D) physical deterioration.
Which of the following is included in the investment component of GDP?
a. households' purchases of newly constructed homes b. net additions to firms' inventories c. firms' purchases of capital equipment d. All of the above are correct.
Over the two decades leading up the 2008 crisis, ________ interest rates meant that consumers could take on ________ debt without significantly increasing the amount of debt service they had to pay.
A. falling; less B. falling; more C. rising; more D. rising; less
What are the two categories of cognitive biases identified by behavioral economists?
A. Unevolved capacity for solving modern problems and faulty heuristics. B. Bad information and lack of impulse control. C. Lack of intellect and mental disorders. D. Inability to reason and inability to delay gratification.