Cyndi says to you, "I'm wondering if I should study abroad in France." You studied in Germany two years ago, and found the cost of living (not counting tuition) to be about $5,000 for a semester, so you say, "I bet it will cost you about $5,000, not counting tuition." Your answer demonstrates:
A. anchoring.
B. biased expectations.
C. using a piece of information loosely related and applying it to your guess.
D. All of these statements are true.
Answer: A
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The demand curve for a perfectly competitive firm is ________, while the demand curve for a monopolist is ________.
A. perfectly inelastic; perfectly elastic B. perfectly elastic; downward-sloping C. vertical; downward-sloping D. perfectly elastic; perfectly inelastic
Which of the following results from one group in a society receiving a disproportionate share of wealth than others in that society?
a. Income inequality b. Poverty growth c. Income redistribution d. Economic recession
The idea that an action should be undertaken if and only if the benefits exceed the costs is known as the concept of
a. economic efficiency. b. public welfare maximization. c. marginal comparative advantage. d. monetary construction of values.
All of the following are transfer payments except
a. welfare payments. b. unemployment compensation. c. personal income taxes. d. Social Security.