Ans: E. Rationality
Which major factor of economic theory do behavioral economists question?
A. Supply and demand
B. Monopolies
C. Interest rates always increasing with term length
D. Objective probabilities in assessing expectation
E. Rationality
Economics
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The practice of buying a firm's good in one market at a low price and selling it in another market for a higher price in order to profit from the price difference is known as
a. Predatory pricing b. Price collusion c. Arbitrage d. Mark-up pricing
Economics
Answer the following statement(s) true (T) or false (F)
1. The consumer price index (CPI) tracks changes in price at the wholesale level. 2. Change in prices is an important economic indicator because it is a measurement of consumer's purchasing power. 3. Cyclical unemployment measures those out of work during the off-season, such as those employed in agriculture and snow-, beach-, or holiday-related industries. 4. Higher productivity results in higher costs and higher prices, resulting in lower income and lower profitability. 5. A recession is a decline in the gross national product (GNP) over two or more consecutive quarters of the year.
Economics
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in taxes will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria
What will be an ideal response?
Economics
Which of the following is true of the capital-gains tax rates?
A. Lower rates of tax encourage tax avoidance. B. Higher rates of tax encourage tax avoidance. C. Lower rates of tax discourage realization. D. Higher rates of tax encourage realization.
Economics