Which of the following do behavioral economists use to demonstrate how our sense of fairness affects our decision making?
a. the endowment effect
b. the gambler’s fallacy
c. the law of diminishing marginal utility
d. the ultimatum game
d. the ultimatum game
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When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile. B) Shares of income increase as we move from the lowest quintile to the highest quintile. C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile. D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.
If Tattling Tina wants to not be hit, what strategy could she follow
a. Threaten to not tell b. Always not tell c. Threaten to tell d. All of the above
Gradual adjustment of prices and wages to an increase in the aggregate demand curve implies that the aggregate supply curve is:
a. horizontal. b. vertical. c. upward sloping but not vertical. d. downward sloping.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one car is ________ pound(s) of cheese.
A. 250 B. 1/250 C. 500 D. 1/20