If psychological limitations and other complications cause people to be unable to examine and think through every possible choice available to them and rely instead on rules of thumb, then these individuals exhibit
A. bounded rationality.
B. completely irrational behavior.
C. normative thinking.
D. positive thinking.
Answer: A
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Refer to the table below. The expected value of the price of the input in Country A is ________ the expected value of the input in Country B.
The above table provides the probability distribution of price of an input next year in Country A and Country B.
A) greater than
B) twice
C) the same as
D) less than
If the world price of a good is equal to its no-trade equilibrium price, the country will import more of the good from other nations
a. True b. False Indicate whether the statement is true or false
Which of the following statements is most correct?
A. We cannot compute either the ex post or ex ante real interest rates accurately. B. We can accurately compute the ex ante real interest rate but not the ex post real rate. C. We can always compute the ex post real interest rate but not the ex ante real rate. D. None of the statements are correct.
In the long run or steady state of the Solow growth model, the growth rate of capital per worker is higher with higher saving rate
a. true b. false