Studies of human decision-making have found that people do not give enough weight to a small number of vivid observations
a. True
b. False
Indicate whether the statement is true or false
False
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The average product is the greatest in the short run when the
A) total product is maximized. B) marginal product is equal to zero. C) marginal product is maximized. D) marginal product is equal to the average product. E) marginal product is greater than the average product.
Suppose Tim has $1,000 in cash on hand to buy collectable baseball cards at a swap meet. Tim often sells these cards at a profit. This is an example of the
A) asset demand for money. B) transaction demand for money C) precautionary demand for money. D) wealth demand for money.
The major economic effect of Medicare subsidies is
A) that the number of physicians has decreased since compensation is low. B) to increase the price of medical services and reduce the quantity demanded. C) to increase the price of medical services and increase the quantity demanded. D) to lower the price of medical services and reduce the quantity demanded.
If education creates positive externalities,
a. private markets provide less than the socially optimal quantity of education b. private markets provide more than the socially optimal quantity of education c. the marginal private benefit curve is higher than the marginal social benefit curve d. the marginal private cost curve is higher than the marginal social cost curve e. the government should impose a depletion tax