The idea that having ownership of an item increases the value that a person puts on the item can be explained by
a. The endowment effect
b. Loss aversion
c. Overconfident bias
d. Anchoring bias
a
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Workers expect inflation to fall from 4% to 1% next year. As a result, this should
A) shift the short-run aggregate supply curve to the right. B) move the economy down along a stationary short-run aggregate supply curve. C) move the economy up along a stationary short-run aggregate supply curve. D) shift the short-run aggregate supply curve to the left.
A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect
A) each country will export different varieties of the product to the other. B) the country in which the price of the product is lower will export the product. C) the country with a relative abundance of the factor of production in which production of the product is intensive will export this product. D) neither country will export this product since there is no comparative advantage. E) the countries will trade only with other nations they are not in competition with.
Suppose that a monopoly is earning economic profits in the short run. As a result,
a. no new firms will enter the industry because of barriers to entry b. the monopolist will increase its price and lower its output c. the market supply curve will shift to the right d. profits will fall as new firms enter the market e. the market demand curve will shift to the left
In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market. B. decrease growth because they slow the growth of capital. C. increase growth because they stop exploitation by foreigners. D. decrease growth because they cause inflation.