Phillip owns some stocks of a pharmaceutical company. Of late, he is anticipating that the company will become bankrupt. He decides to find out more about the company's financial condition before selling the stocks
However, he tends to read only the blogs of investors who are expecting the company to become bankrupt. He soon makes up his mind and sells the stock just before its price reaches an all-time high. Phillips's behavior is an example of a(n) ________ bias. A) confirmation
B) attentional
C) attenuation
D) distinction
A
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Which of the following helps in determining whether health care cost rises because of government policy, or because of demand rising faster than supply?
a. Examining the market for health care away from the belief that the market outcome is unfair b. Examining the market for health care with the belief that the market outcome is unfair c. Examining the allocation system d. Examining the changes in the price of health care products e. Examining the changes in the number of suppliers of health care in the market
Which of the following is not an important question for economic policy raised by the experience of the textile industry?
a. How does international trade affect consumer well-being? b. Who gains and who loses from free trade among countries? c. How do the gains from trade compare to the losses? d. Which argument for restricting free trade is politically feasible?
Which of the following best exemplifies a firm with a zero economic profit?
a. A hair salon that is making a small profit after expenses, but whose owners feel they could make more money by closing the business and getting different jobs. b. A bike shop that makes enough of a profit that its owners feel it is worth the time and money they put into the business. c. A cleaning service that is just getting started and does not yet have enough customers to cover the firm’s expenses. d. A popular restaurant with revenues that greatly exceed expenses and whose owners are planning to expand into a chain.
Suppose the own price elasticity of demand for good X is ?5, and the quantity of good X decreases by 5 percent. What would you expect to happen to the total expenditures on good X?
A. Unchanged B. Decrease C. Increase D. Neither increase, decrease, nor remain unchanged