Which of the following is a feature of a behavioral economic model?
A. It focuses on cognitive, emotional, and social factors that affect individual decisions.
B. It is based on marginal analysis in decision making.
C. It suggests that individuals always behave rationally.
D. It considers incentives an unimportant tool to study human behavior.
Answer: A
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The characteristic of games whereby the outcome of the game depends not only on what you do but on what the other players do in response is called
A) strategic interaction. B) mutual interdependence. C) optimal choice analysis. D) decision theory.
An investor deposits $400 into a bank account that earns an annual interest rate of 8%. Based on this information, how much interest will he earn during the second year alone?
A. $25.60 B. $64 C. $34.56 D. $32
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
In which of the following cases did the government successfully block a merger?
A. Staples and Office Depot B. Interstate Bakeries and Continental Bakery C. AT&T and Verizon D. Standard Oil and Mobil