Among the evidence that people do not always make choices that reflect sensible preferences are examples of:
A. choice reversals.
B. conformance to the principle of revealed preference.
C. compliance with the Ranking Principle.
D. All of these provide evidence that people do not always make choices that reflect sensible preferences.
A. choice reversals.
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A disadvantage associated with grouping jobs on the basis of functional specialty is that
A. managers tend to ignore the interdependencies among units that might lower a firm's value. B. managers rely on implicit understanding and informal relationships. C. employees have to seek ratification from managers for initiation and implementation of decisions. D. employees concentrate more on achieving departmental goals rather than customer satisfaction.
Other things the same, if the exchange rate changes from 6 Chinese yuan per dollar to 7 Chinese yuan per dollar, then the dollar
a. appreciates and buys more Chinese goods. b. appreciates and buys fewer Chinese goods. c. depreciates and buys more Chinese goods. d. depreciates and buys fewer Chinese goods.
When U.S. residents buy products that were made in Japan, then ultimately the Japanese want
A) yen. B) dollars. C) Japanese goods. D) goods, including U.S.-made goods.
If markets for addictive drugs have a more elastic demand curve than is often thought, and if addicts tend to be unstable people with low incomes, we might speculate that the most likely reason for the surprising elasticity estimates is that
A. addictive drugs are inferior goods. B. the income and substitution effects work in opposite directions. C. the substitution effect is smaller than expected because addicts aren't as addicted as we thought. D. the income effect has a more constraining effect than we had anticipated.