Endogenous growth theory attempts to
A) replace the Solow model with a model in which money growth plays a key role.
B) explain how societies can more easily reach the "Golden Rule."
C) show how population growth reduces capital and output.
D) explain why productivity changes.
D
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If workers who make DVDs get a pay raise, the equilibrium price of a DVD ________ and the equilibrium quantity of DVDs ________
A) rises; increases B) rises; decreases C) falls; decreases D) falls; increases
If a monopolist is producing at that output where price equals average variable cost in the short run, then it is earning a negative profit
a. True b. False Indicate whether the statement is true or false
Which of the following could lead to an increase in the equilibrium quantity of a good?
a. a decrease in supply and a decrease in demand b. an increase in the price of an input c. an increase in demand and an increase in supply d. a decrease in demand regardless of supply e. a decrease in technology
Answer the following statements true (T) or false (F)
1. Behavioral economics developed as a field of study that looks into how people make rational decisions based on self-interest. 2. One major point of disagreement between neoclassical economics and behavioral economics is the assumption of rationality. 3. Neoclassical economics and behavioral economics are similar in the assumption that people are capable of making accurate, sometimes complex, calculations with respect to their utility-maximizing decisions. 4. Neoclassical economics focuses on predicting behavior of economic agents, whereas behavioral economics focuses on the mental processes involved in decision-making. 5. Behavioral economics hopes to eventually fully replace the neoclassical economic model.