According to the availability heuristic, which of the following will make Katie more likely believe that she will win a lot of money if she buys a lottery ticket?
A. The fact that it has been several years since she purchased a lottery ticket
B. The fact that is has been several years since anyone has won the lottery
C. Her boss hinting that she will soon receive a raise at work
D. Watching a news report about someone winning 2 million dollars playing the lottery
Answer: D
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Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The coupon rate for bond B is
A. 0.04 percent. B. 4.3 percent. C. 4.1 percent. D. 11 percent.
An advantage of a unit tax is that the relative price changes have no effect on the tax per unit
a. True b. False
In a monopolistically competitive market,
a. there are only a few sellers. b. each firm takes the price of its product as given. c. firms can enter or exit the market without restrictions. d. each firm produces a product that is essentially identical to the products of other firms in the market.
The biggest problem caused by a deflation is that:
A. prices fall. B. wages fall. C. people cannot repay their debts. D. interest rates rise.