A company has designed an alarm clock that "runs and hides" after going off, forcing the person to get up and find the alarm clock if he or she wants to shut off the alarm. According to behavioral economists:
A. it is unlikely to alter people's tendency to shut off the alarm and ultimately oversleep.
B. the alarm clock keeps people from hitting the snooze button and taking advantage of the
availability heuristic.
C. the alarm clock serves as a precommitment device, helping the user to stick to the
originally planned wake-up time.
D. overconfidence effects will discourage use of such devices.
Answer: C
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If the demand for a good were completely inelastic,
A) the good is a basic necessity. B) the good is a luxury. C) there are no substitutes for the good. D) there had been a long period of time for people to adjust their behavior. E) people who own the good currently do not want to give it up except at much higher prices.
In the long run, perfectly competitive firms cannot earn an economic profit
Indicate whether the statement is true or false
Actual real GDP this year is expected to exceed last year's by two percent, while the annual growth rate of natural real GDP is three percent. This is enough to lead us to expect that this year's unemployment rate will be
A) below last year's and below the natural rate of unemployment. B) below last year's but still above the natural rate of unemployment. C) below last year's. D) above last year's. E) above last year's and above the natural rate of unemployment.
In the long run, the price of information products in monopolistically competitive markets will be equal to
A) zero. B) MC. C) AFC. D) ATC.