Answer the following statement true (T) or false (F)
1) The availability heuristic refers to people purchasing what is most easily accessible.
2) The self-serving bias causes people to act only in their self-interest.
3) The overconfidence effect exists when people underestimate their chances of being wrong.
4) Framing effects may cause the same person to view the same new situation differently
depending on whether that new situation makes him or her better or worse off.
1) F
2) F
3) T
4) T
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Investments made "today" in machines, equipment and buildings do not have an immediate effect on total capital stock
Indicate whether the statement is true or false
The above table gives the demand schedule for Billy Bob's BBQ ribs. The demand for Billy Bob's ribs over the price range of $1 per pound to $3 per pound is
A) perfectly elastic. B) elastic. C) unit elastic. D) inelastic.
The high cost of advertising during the Super Bowl will
A) not affect the efficient level of output because advertising is a sunk cost. B) will affect the efficient level of output because profits will fall significantly. C) not affect the efficient level of output because advertising is a fixed cost. D) Not enough information given.
In what way is consumer demand different from consumer wants?
a. Demand is only for necessities. b. Demand is only for luxuries. c. Demand takes into account the ability to pay. d. Consumer wants are only for luxuries. e. Consumer wants are only for necessities.