What are the two categories of cognitive biases identified by behavioral economists?
A. Unevolved capacity for solving modern problems and faulty heuristics.
B. Bad information and lack of impulse control.
C. Lack of intellect and mental disorders.
D. Inability to reason and inability to delay gratification.
Answer: A
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To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.
___________ is the highest valued alternative that must be sacrificed to satisfy a want or attain something
a. Intangible resource b. Choice c. Opportunity cost d. Availability
A change that decreases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and ________ the profit-maximizing quantity to hold in inventory.
A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a ___________ economic statement, and the labor union head's statement is a(n) _____________ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper