Behavioral economists view the standard economic theory of decisions involving time as being too restrictive because people have:
A. lapses in self-control.
B. perfect foresight.
C. a tendency to ignore sunk costs.
D. lapses in self-control and a tendency to ignore sunk costs.
A. lapses in self-control.
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Per capita real GDP is the measure most frequently used to compare international living standards
Indicate whether the statement is true or false
Deadweight loss is greatest when
a. both supply and demand are relatively inelastic b. both supply and demand are relatively elastic c. supply is elastic and demand is perfectly inelastic d. demand is elastic and supply is perfectly inelastic
In a market economy a significant change in consumers' desire for product X will:
A. alter the profits or losses received by suppliers of product X. B. cause a reallocation of scarce resources. C. cause some industries to expand and others to contract. D. do all of these.
In Figure 8.1, an increase in government spending, ceteris paribus, is best represented as a movement from point
A. A to point C. B. B to point C. C. A to point B. D. C to point A.