When Tversky and Khaneman asked one group of people to imagine that, having previously purchased a ticket for $10, they arrive at the theater to discover they have lost their ticket and a second group to imagine that they arrive just before the performance to buy a ticket and find they have lost $10 from their wallets, they found that people in the lost ticket group were more likely to say they would ________ the performance, even though the rational choice model predicts that people in ________.
A. no longer attend; both groups should be equally likely to say they would still attend
B. still attend; both groups should be equally likely to say they would still attend
C. still attend; the lost $10 group should be more likely to say they would still attend
D. no longer attend; the lost $10 group should be more likely to say they would no longer attend
Answer: A
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A. 11 percent. B. -1 percent. C. 1 percent. D. -1.2 percent.
Which of the following statements is TRUE for any marginal and average?
A) When the marginal is greater than the average, the average increases. B) When the marginal is less than the average, the average increases. C) When the marginal is rising, the average is increasing. D) When the marginal is equal to the average, the average decreases.
Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Maximizing the benefits of a transaction made under a contract often requires specific investments that lose value if the parties fail to fulfill their commitments
Indicate whether the statement is true or false