The recency effect is:
A. accounting for most recent profits or losses first on financial statements.
B. a basic human tendency to overvalue recent experience when trying to predict the future.
C. earning a profit by betting against what everyone else is doing.
D. a hotly debated concept among psychologists and economists.
Answer: B
You might also like to view...
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 30,000 units
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently high. B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000. C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.
Why is a single-price monopoly inefficient?
What will be an ideal response?
All of the following explain the downward slope of the aggregate demand curve EXCEPT
A. the availability of foreign substitute goods. B. the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods. C. changes in the stock of real wealth held by individuals. D. the presence of unused production capacity and unemployment.
Both monopolies and monopolistically competitive firms set marginal revenue equal to marginal cost to maximize profit. Given the same cost curves, would you expect prices to be higher in a monopoly or a monopolistically competitive market?
What will be an ideal response?