If two choices are the same but one is presented in a positive manner and one in a negative context, people:
A. respond differently because of the framing effect.
B. are rational and respond the same.
C. respond differently because of the endowment effect.
D. respond the same because of the endowment effect
Answer: A
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Industrial entrepreneurs like J.P. Morgan, Henry Ford and Andrew Carnegie were driven by desires to earn profits. In the process of pursuing these profits, American consumers were made better off
Indicate whether the statement is true or false
Regarding the frustration of purpose doctrine, which of the following statements is true?
a. the purpose for which seller entered into the contract has become illegal b. the purpose for which buyer entered into the contract has become illegal c. the purpose of the contract has become illegal d. the contract no longer facilitates deferred exchange
Suppose that the inflation rate was 4 percent in 2002 and 3 percent in 2003 . This would mean that
a. the price level fell from 2002 to 2003 b. the price level fell at a faster rate in 2003 than in 2002 c. the price level rose at a faster rate in 2003 than in 2002 d. the price level rose at a slower rate in 2003 than in 2002 e. all prices in the economy rose at a rate of 3 percent in 2003
If two individuals have identical schooling, their incomes will be equal.
Answer the following statement true (T) or false (F)