Behavioral economists have found that people ______________, and this leads to irrational decisions.
A. often forget money is fungible
B. often undervalue opportunity costs
C. often forget to ignore sunk costs
D. All of these statements are correct.
D. All of these statements are correct.
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The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply decreases
A) easy; rise B) easy; fall C) tight; fall D) tight; rise
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Exhibit 14-3 Impact of flights on house valueEach time Orville flies over Wilber's house, the noise reduces the value of Wilbur's house. The table shows the profits to Orville of each flight, and the value of Wilbur's house. Numberof flights Totalprofits Marginalprofits Value of Wilbur'shouse 1 $10,000 $10,000 $100,000 2 18,000 8,000 95,000 3 24,000 6,000 90,000 4 28,000 4,000 85,000 5 30,000 2,000 80,000 As shown in Exhibit 14-3, at the socially efficient number of flights, what will be the market value of Orville's house?
A. $100,000. B. $95,000. C. $90,000. D. $85,000.
Excise taxes
A. are aimed at a specific good or service. B. are aimed at a wide range of products. C. are direct taxes. D. are generally progressive in nature.