A mother gives her teenage daughter two choices: spend 20 minutes cleaning her room today or spend 25 minutes cleaning her room tomorrow. The same mother gives her same daughter two additional choices: clean out the garage for 20 minutes next Tuesday or 25 minutes next Wednesday. According to economic theory,
a. if the daughter chooses to procrastinate, she is behaving irrationally.
b. the daughter will likely choose to clean out her room tomorrow but clean out the garage next Tuesday.
c. the daughter will likely choose to clean out her room tomorrow and clean out the garage next Wednesday.
d. if the daughter chooses to procrastinate, she is exhibiting satisficing behavior.
b
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The natural rate hypothesis concludes that when the inflation rate unexpectedly increases, the unemployment rate ________
But when the higher inflation rate becomes the expected inflation rate, the unemployment rate then ________ until it reaches the ________ unemployment rate. A) decreases; decreases; natural B) increases; decreases; natural C) decreases; increases; natural D) increases; decreases; minimum E) decreases; increases; maximum
According to the graph shown, the profit being earned by this monopolist is:
This graph shows the cost and revenue curves faced by a monopoly.
A. (P3 P0) ×Q1
B. (P3 P1) × Q1
C. (P1 P0) × Q1
D. (P3 P0)/Q1
On the basis of the equation of exchange, the policy makers of an economy predicted that an increase in money supply would result in an increase in real gross domestic product. This prediction was based on the assumption that: a. there were no fluctuations in the interest rate
b. the velocity of money in the economy did not increase. c. the nominal gross domestic product of the economy was constant. d. the discount rate was fixed.
Summarize examples of how a change in demand for one good can affect demand for a related good?