The certainty effect shows that
A) people are overconfident about their choices.
B) people prefer certain outcomes to uncertain outcomes even when the expected value of the uncertain outcome is lower.
C) people prefer certain outcomes to uncertain outcomes even when the expected value of the uncertain outcome is higher.
D) people prefer certain outcomes to uncertain outcomes even when the expected values are the same.
C
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Which of the following is incorrect regarding financial intermediaries? a. They link savers and borrowers
b. They earn profits by loaning money. c. They offer lower interest rates on savings than they charge on loans. d. They print money. e. They accept deposits.
When the economy slows down:
A. firms contract their operations. B. demand for workers decreases. C. GDP growth is slowing or negative. D. All of these are true.
On the graph above, which pair of points best represents the impacts in the U. S. of the financial crisis and policy response from 2007 through 2008?
A) H to I B) K to G C) I to H D) K to F E) G to J
Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be
a. a significant increase in government revenue and a significant decrease in the quantity consumed. b. a significant decrease in the quantity consumed with no change in government revenue. c. a significant increase in government revenue and no change in the quantity consumed. d. no increase in government revenue and no change in the quantity consumed.