Behavioral economic theories are developed based on the following, except:
A. Assuming that people always make rational decisions and choices
B. Observing people's actual behavior, including irrational behavior
C. Trying to explain people's tendency to make systematic errors in certain situations
D. Dropping the neoclassical assumption that people are fundamentally rational
A. Assuming that people always make rational decisions and choices
You might also like to view...
Use of the principle of comparative advantage involves
a. specialization only. b. exchange only. c. both specialization and exchange. d. money only.
Explain the concept of the "idea gap" in development economics
What will be an ideal response?
Japan has invested large sums of money in the United States over the last 15 to 20 years in order to
A. Control the American economy. B. Take over the country without war. C. Earn a higher rate of return on their investment. D. Dominate the U. S. goods market.
A firm uses labor and capital in its production process, and it faces competitive markets for its inputs and output. The firm's long-run labor demand curve
A) intersects with the short-run labor demand curve in several points. B) is exactly identical to its short-run labor demand curve. C) is steeper than its short-run labor demand curve. D) is flatter than its short-run labor demand curve.