According to behavioral economics, cognitive biases:
A. create errors in decision making, but these errors are random and follow no particular
pattern.
B. occur but are not prevalent enough to distort the behavioral predictions of neoclassical
economics.
C. are misunderstandings or misperceptions that cause systematic error.
D. are solely the result of faulty heuristics.
Answer: C
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Refer to Table 2.4. Increasing the tanks of fertilizer from 4 to 5 will
A) decrease truckloads of potatoes. B) increase truckloads of potatoes. C) have no effect on truckloads of potatoes. D) require more acres of land.
________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
A) Autarky B) Absolute advantage C) Comparative advantage D) Specialization
What would happen to measured GDP if more people started hiring workers to do household chores such as cooking and cleaning?
What will be an ideal response?
A decrease in autonomous planned investment spending, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right