Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making.
B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources.
C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption.
D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
Answer: A
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Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the left?
A) Both equilibrium rate of interest and quantity of credit will decrease. B) Both equilibrium rate of interest and quantity of credit will increase. C) The equilibrium rate of interest will decrease and the quantity of credit will increase. D) The equilibrium rate of interest will increase and the quantity of credit will decrease.
Kaitlyn and Larissa have formed a dog bathing and grooming business business. The number of dogs they can bathe or groom in any given day is depicted in Table 2.1. The opportunity cost of grooming the first dog in a day is bathing ________ dog(s)
A) 1 B) 2 C) 24 D) 25
Using Figure 1.3 and PP1, at point A,
A. The available technology keeps production inside PP1. B. An increase in the production of mops would definitely require a decrease in the production of brooms. C. There is inefficient use of available resources. D. All available resources are being used efficiently.
The additional utility or satisfaction that one derives from consuming one more unit of any good or service is referred to as
A) total utility. B) diminishing utility. C) average utility. D) marginal utility.