To demonstrate the anchoring phenomenon, Kahneman and Tversky would ask research subjects very difficult questions that should be answered with a number between zero and 100
Before asking for the respondent's answer, they would also spin a large wheel that generated random number outcomes from zero to 100. If the respondents were subject to the anchoring effect, then we should expect that: A) their responses are uncorrelated with the numbers generated by the wheel.
B) their responses are correlated with the numbers generated by the wheel.
C) their responses are wrong most of the time.
D) none of the above
B
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In 1982, the retirement age was raised in such a manner that it is 65 for everyone born before 1938
A. and 70 for everyone born in 1960 or after, with a gradual increase in between. B. and 67 for everyone born in 1960 or after, with a gradual increase in between. C. and 70 for everyone else. D. and 67 for everyone else.
How can compensating differentials explain differences in wages across jobs in different industries?
What will be an ideal response?
What limited the effectiveness of monetary policy during the Financial Crisis of 2007-2009?
What will be an ideal response?
The inflationary premium is that portion of the interest rate that reflects
a. the real return derived by lenders. b. the rush to buy goods before prices rise. c. the expected annual rate of decline in the purchasing power of money while a loan is outstanding. d. the price that one must pay for earlier availability of goods and services during a period of price stability.