Spurious Correlation
What will be an ideal response?
- X and Y are correlated
- Their values appear to change together in a measurable way
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Refer to the figure above. What is the equilibrium quantity of credit when the credit demand curve is CD2 and the credit supply curve is CS1?
A) $40 B) $50 C) $30 D) $20
Labor unions composed of workers who engage in a particular trade or skill, such as carpentry, are called
A) craft unions. B) industrial unions. C) collective unions. D) closed unions.
If Christopher earns $80,000 in taxable income and pays $20,000 in taxes, his average tax rate is 20 percent
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The "hedonic treadmill" of prospect theory suggests that if people's incomes rise and stay at the new higher level, then their feelings of satisfaction also rise and stay at the new higher level. 2. The anchoring effect suggests that when people are made to think of large abstract numbers before they go shopping, many of them will subsequently be willing to pay higher prices for stuff. 3. The endowment effect makes people value things less when they think of those things as their own as opposed to identical things that are not theirs - as in "grass is greener on the other side". 4. "Loss aversion" helps explain why people buy insurance policies with lower deductibles even though the policies are more expensive. 5. The status quo effect suggests that giving people more options is always good for them.