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) unbounded rationality.
B) normative thinking.
C) bounded rationality.
D) positive thinking.
C
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For a person to keep his real income steady at a certain level from one year to the next, his nominal income must
A. stay the same as the price index rises. B. rise as fast as the price index. C. rise if the price index falls. D. fall if the price index rises.
Suppose that the free market exchange rate for the dollar is 115 yen, but the U.S. and Japanese governments want it to be 120 yen/dollar. What can the governments do? Illustrate your answer with a graph
What will be an ideal response?
The aggregate demand curve slopes:
A. downward, like individual supply curves. B. downward, like individual demand curves. C. upward, like individual supply curves. D. upward, like individual demand curves.
Why do cereals marketers most prefer to have their brand occupy the shelf-space a foot or two below a typical adult's eye-level?
A. Because they know that adults typically look down when they go by the store shelves B. Because that shelf-space is the lowest-priced space they could occupy C. Because it's a lot easier to re-stock those shelf-spaces D. Because they are targeting the children who go shopping with adults