The use of expensive cars and yachts to impress others rather than just as transportation is an example of what economists call:

A. bounded rationality.
B. conspicuous consumption.
C. rules of thumb.
D. focal point equilibrium.


Answer: B

Economics

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If an agent is risk averse and a principal is risk neutral, if the agent pays the principal a fixed fee

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If your wages are indexed so that they automatically adjust for inflation, in a period of continued high inflation, the cost of the goods and services you buy ____ and your nominal income ____

a. decreases, decreases b. increases, increases c. decreases, remains the same d. increases, remains the same

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Policy lags are typically much shorter for monetary policy than for fiscal policy

a. True b. False Indicate whether the statement is true or false

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