Which of the following is a question that a behavioral economist would seek to answer but a traditional economist would not?
a. How do rational consumers maximize their marginal utility?
b. Do real-life consumers actually maximize their marginal utility?
c. What are the mathematical conditions for consumer equilibrium?
d. How does the marginal utility curve relate to the demand curve?
b. Do real-life consumers actually maximize their marginal utility?
You might also like to view...
Suppose early one Friday morning the economics club buys 200 donuts at 25 cents each, and plans to sell all of them later in day on campus for 50 cents each
Only 60 donuts are sold at 50 cents, however, and by early afternoon the club is seen trying to unload the remaining donuts for 10 cents each. What is the correct price of one of donut? A) 10 cents B) 25 cents C) 50 cents D) Stated this way, the question is meaningless.
The stable, long-run equilibrium in a competitive market occurs when the market price equals the lowest point on a firm's average total cost curve
a. True b. False Indicate whether the statement is true or false
Many health insurers require a deductible where the policyholder pays the first part of any loss. The use of a deductible most directly treats the problem of:
A. moral hazard. B. people going uninsured. C. adverse selection. D. free riding.
If the economy's full-employment output is $12 trillion, actual output is $10 trillion, and the budget deficit is $2 trillion, the deficit in this case is known as a
A. natural employment deficit. B. cyclical deficit. C. debt deficit. D. structural deficit.