Herbert Simon, one of the first social scientists to work at the boundary of economics and psychology, suggested that humans should be viewed not as rational maximers but as
satisfiecers.
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How can tax simplification be beneficial to the economy?
What will be an ideal response?
When a market is monopolistically competitive, the typical firm in the market can earn
a. losses in the short run and profits in the long run. b. profits in the short run and the long run. c. losses in the short run and zero profit in the long run. d. zero profit in the short run and losses in the long run.
Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true?
a. There is a surplus of 1.2 million workers in the labor market. b. There is a surplus of 400 thousand workers in the labor market. c. There is a shortage of 400 thousand workers in the labor market. d. There is a shortage of 800 thousand workers in the labor market.
The decrease in the price of a good would
A. cause a movement along the supply curve to a (higher price, higher quantity) point. B. move its supply curve to the right. C. move its supply curve to the left. D. cause a movement along the supply curve to a (lower price, lower quantity) point.