If Kahneman and Tversky are correct, I should
A. be indifferent which type of investment I make.
B. buy individual stocks rather than put my money into a mutual fund.
C. have opposite strategies depending on whether my investments will rise or fall.
D. put my money in a mutual fund instead of individual stocks.
Answer: C
You might also like to view...
Price elasticity of demand is defined as
A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price. E) the quantity demanded divided by the price.
According to the law of demand, the higher the price, the lower the quantity demanded. But, five years ago the Dropouts used to sell only 50 tickets for their shows at $5 each. Today they sell 5000 tickets at $20 each
Does the change described above contradict the law of demand? A) Yes, because the price has fallen and the quantity demanded has fallen. B) Yes, because the price has risen and the quantity demanded has risen. C) No, because the supply has risen. D) No, because other things weren't constant.
The above figure shows the supply and demand curves for high-skilled and low-skilled labor. High-skilled workers earn a wage rate of
A) $15 per hour. B) $12 per hour. C) $9 per hour. D) $6 per hour.
Which type of unemployment is most likely to fall as a result of government policies that stimulate aggregate demand?
a. frictional unemployment b. structural unemployment c. natural unemployment d. cyclical unemployment