According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as
A) rules of thumb.
B) rational options.
C) irrational choices.
D) normative decisions.
Answer: A
You might also like to view...
Of the following high-income countries, which has the highest obesity rate?
A) Canada B) Japan C) the United Kingdom D) the United States
Ben's Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if
A) his Shoppe's total revenue exceeds his capital costs. B) his Shoppe's total revenue exceeds his implicit costs. C) his Shoppe's total revenue exceeds his fixed cost. D) his Shoppe's total revenue exceeds his variable cost.
Assume a bank has $200 million of assets with a duration of 2.5, and $190 million of liabilities with a duration of 1.05. The duration gap for this bank is
A) 0.5 year. B) 1 year. C) 1.5 years. D) 2 years.
The biggest advantage of capitalism is that
a. It generates wealth with the help of government intervention b. Prices hinder in moving assets from high-value to low-value uses c. It forces involuntary exchanges d. It creates wealth by letting a person follow his or her own self-interest