Loss aversion occurs when:
A. the consumer's valuation of an outcome is less sensitive, per dollar, to small losses than to small gains.
B. the consumer's valuation of an outcome is more sensitive, per dollar, to small losses than to small gains.
C. the consumer's valuation of an outcome is more sensitive, per dollar, to large losses than to small gains.
D. the consumer's valuation of an outcome is less sensitive, per dollar, to small losses than to large gains.
B. the consumer's valuation of an outcome is more sensitive, per dollar, to small losses than to small gains.
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If a product provides a positive externality, a duopoly
A) will provide more social welfare than a monopoly. B) will provide less social welfare than a monopoly. C) will provide the same social welfare as a monopoly. D) introduces an interesting and untested twist to the externality story.
Using the rule of 72, determine how long it would take for real GDP to double if it grew at a constant growth rate of 8 percent.
A. 8 years. B. 9 years. C. 576 years. D. 72 years.
Charging a higher price for a motel room to customers with dogs or cats than to customers with no pets is most likely an example of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) actual cost differences.
The total amount spent on new capital goods is called
A) financial capital. B) depreciation. C) net investment. D) wealth. E) gross investment.