Behavioral economics suggests that people face human limitations that prevent them from examining every possible choice available to them, with the implication that
A. the consumer optimum implied by utility theory is an inappropriate approach to deriving demand curves.
B. the consumer optimum implied by utility theory is an appropriate approach to deriving demand curves.
C. marginal utility is always negative.
D. marginal utility is always equal to zero.
Answer: A
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The Rule of 70 can be used to calculate the
A) 70 percent level of the economic growth rate. B) population growth rate per year. C) economic growth rate per year. D) economic growth rate per month. E) number of years it would take for the level of any variable to double.
According to economist A. P. Lerner, taking income from a wealthy individual and giving it to a poorer individual would
a. decrease the economy's total utility b. decrease the economy's investment rate c. eventually increase poverty in the economy d. lessen the incentive to work e. increase the economy's total utility
Refer to the above figure. When the price in the market is $4, economic profits will equal
A. $200. B. $400. C. $300. D. $100.
In reality, the wage-gap between two countries will:
A. Always be reduced to zero through migration B. Be greater than zero because of migration costs C. Always be sufficient to cover the marginal costs of migration D. Be smaller the greater the distance between the countries