Prospect theory can explain why
A) people tend to gamble on long odds with small expected utility.
B) people tend to sell their losing stocks and keep their winning stocks.
C) people should only sell their losing stocks.
D) people should never play the lottery.
B
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All of the following location characteristics can result in lower worker salaries except which one?
A) unpleasant work conditions B) low cost of living C) great climate D) short commute time
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes
a. benefit the United States as a whole, because they generate revenue for the government. In addition, because the goods are priced below cost, the taxes do not harm domestic consumers. b. benefit the United States as a whole, because they generate revenue for the government and increase producer surplus. c. harm the United States as a whole, because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue. d. harm the United States as a whole, because they reduce producer surplus by an amount that exceeds the gain in consumer surplus and government revenue.
The European Union promotes:
A. free trade among member nations, but not necessarily with nonmember nations. B. higher tariffs worldwide to promote more national stability. C. higher tariffs among member nations to encourage more trade between Western Europe and the United States and Japan. D. free trade among all nations.