The concept of loss aversion is:
A. a general tendency for people to put more effort into achieving gains than avoiding losses.
B. preferring certain outcomes over uncertain ones.
C. a general tendency for people to put more effort into avoiding losses than achieving gains.
D. a spectrum of tolerance for risky situations.
Answer: C
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Ceteris paribus, an increase in consumers' income will result in: a. a decrease in demand for an inferior good
b. an increase in demand for an inferior good. c. a decrease in the quantity supplied of an inferior good. d. an increase in the quantity supplied of an inferior good.
If a firm is earning a negative economic profit, it means that:
A. the resources should not be invested in other business opportunities. B. the opportunity cost is smaller than what the firm is earning. C. more profits could be earned with the same resources in another industry. D. it must be earning negative accounting profit.
In the long run, if there is an increase in the money supply growth rate, which of the following curves shifts right?
a. the short-run and the long run Phillips curves b. the short-run but not the long run Phillips curve c. the long-run but not the short-run Phillips curve d. neither the short-run nor the long-run Phillips curves
A society without any money:
A. would have to rely on barter. B. could never exchange goods and/or services. C. would find people doing everything for themselves. D. would be more efficient since people would be more self-sufficient.