Jessica's workplace is collecting money for a lottery pool. Each employee can choose to contribute $50, with a 1 in 600,000 chance of winning $1 million. If Jessica chooses not to contribute to the lottery pool, she is probably experiencing:
A. status quo bias.
B. loss aversion.
C. the endowment effect.
D. positive framing.
Answer: B
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The costs affecting decisions to supply are always
A) accounting costs. B) marginal costs. C) past costs. D) per unit costs. E) non-taxable costs.
Between 1860 and 1914, the concentration of industrial power did increase. What did members of the general public perceive to be the result of this heavy concentration?
(a) Expanded output (b) Lower prices (c) A transfer of income away from consumers toward big businesses (d) All of the above
Under new Keynesian theory, a correctly anticipated decrease in aggregate demand will lead to __________ in Real GDP and __________ in the price level
A) a decrease; a decrease B) no change; an increase C) no change; no change D) an increase; an increase E) an increase; no change
Assume a purely competitive decreasing-cost industry is initially in long-run equilibrium but then there is a decrease in consumer demand. After all economic adjustments to this new situation have taken place, product price will be:
A. Higher, but total output will be lower B. Lower, and total output will be lower C. Higher, and total output will be higher D. Lower, but total output will be higher