The Cost-Benefit Principle:
A. describes how people behave once they have enough education.
B. provides an abstract model of how people should choose between alternatives.
C. provides little insight into how people actually chose between alternatives.
D. fully captures how people choose between alternatives.
Answer: B
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To avoid the winners curse
a. Bid as if you have estimated the valuation higher than any other bidder b. Bid as if you have estimated the valuation highest c. Bid as if you are the smartest of all the bidders d. Bid as if everyone else has a terrible estimate of the value of the product
Assume that a hurricane in Brazil destroys half of the coffee crop. Considering that Brazil is a major coffee producing country, consumers expect the price of coffee to increase in the near future. How does this reflect on the demand for coffee?
a. There is a movement upward along the demand curve for coffee. b. The demand curve for coffee shifts inward. c. The demand curve for coffee shifts outward. d. There is a movement downward along the demand curve for coffee. e. The demand for coffee declines.
Based on geographical economic data, which person most likely avoided the housing boom after the 2001 recession?
a. Maggie, a teacher in Tennessee b. Sam, an attorney in Florida c. Louis, a writer in Massachusetts d. Pilar, a fashion consultant in New York
The major protection against sudden mass attempt to withdraw cash from banks is the:
A. Federal Reserve. B. Consumer Protection Act. C. deposit insurance provided by the FDIC. D. gold and silver backing the dollar.