One major consequence of the overconfidence effect is that:
A. Some people cannot correct a personal trait that might be causing them to fail in many ventures
B. Someone could persist in pursuing a failed policy despite overwhelming evidence of the failure
C. Bad decisions can be made because people will act without pausing to see whether their intuition is correct or not
D. Some people may wrongly believe in their forecasting ability to predict future outcomes of risky investments
C. Bad decisions can be made because people will act without pausing to see whether their intuition is correct or not
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The number of US households with access to the Internet is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:
A. more information because the Internet has lowered the cost of gathering information. B. less information because the Internet has lowered the cost of gathering information. C. more information because the Internet has increased the cost of gathering information. D. less information because the Internet has increased the benefit of gathering information.
________ policies seek to promote rapid industrialization by erecting high barriers to foreign goods to encourage local production,
A) Comparative advantage B) Primary-export-led development C) Import-substitution development D) Outward-looking development
The ways to address agency costs include
a. gathering information about the agent's characteristics before hiring b. gathering information about the agent's actions once hired c. incentivizing agents to work on behalf of principals d. all of the above
The major difference between the Keynesian approach and the monetarist approach is that
A. Keynesian analysis explains an equilibrium condition and monetarism does not. B. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates. C. monetarism explains an equilibrium condition and Keynesian analysis does not. D. there are no differences.