What is meant by the present bias?
What will be an ideal response?
The present bias suggests that today is more important than the future. The weight you put on tomorrow is the same as the weight you put on the day after tomorrow. For you, all of the future days are roughly alike. It is today that is most important.
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The MU of computers is initially larger than the MC of producing them in a free market. We may expect output of computers to
A. fall, MC to rise, and MU to rise. B. rise, MC to fall, and MU to fall. C. rise, MC to rise, and MU to fall. D. fall, MC to fall, and MU to rise.
If a policy is Pareto optimal:
A. it will hurt no one. B. some of the losses will exceed the gains. C. it will hurt more than 50 percent of the population. D. it will hurt less than 50 percent of the population.
The unemployment that occurs as jobs are eliminated because of changing technology is known as
A. frictional. B. voluntary. C. structural. D. fundamental. E. cyclical.
Which of the following is an activity of government that is not an activity of private firms?
A. Enforcing involuntary transactions. B. Paying equitable wages. C. Creating positive externalities. D. Pursuing economic efficiency.