Behavioral economists have discovered the following things about people's reaction to losses:
A. People judge losses in relative terms; i.e., relative to the status quo
B. People experience increasing marginal disutility from losses
C. People would feel the loss of $1,000 more intensely than they would feel the gain of $1,000
D. When people lose successive equal amounts, the initial losses are more painful than later ones
B. People experience increasing marginal disutility from losses
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When a surplus exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
Working conditions, prestige, variety, location, employee freedom, and employee responsibilities are all examples of
a. the tools of employment discrimination. b. sociological factors affecting employment. c. pecuniary job characteristics. d. non-pecuniary job characteristics.
Jamarcus works part-time as a pizza delivery person in a college town. The Bureau of Labor Statistics counts Jamarcus as
a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. employed and not in the labor force.
Refer to Exhibit 15-5. At short-run equilibrium, this economy is in a(n) ___________________ gap. An economist who believes that the economy is self-regulating would assert that _____________________________.
a. inflationary; the SRAS curve will shift leftward sufficiently to close the inflationary gap b. recessionary; the SRAS curve will shift rightward sufficiently to close the recessionary gap c. inflationary; the AD curve will shift leftward sufficiently to close the inflationary gap d. recessionary; the AD curve will shift rightward sufficiently to close the recessionary gap