The so-called "Lake Wobegon effect", where everyone in a group claim to be above average, illustrates the:
A. Confirmation bias
B. Framing effect
C. Overconfidence effect
D. Self-serving bias
C. Overconfidence effect
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Which of the following firms is most likely to spend on innovation?
A) A perfectly competitive firm B) A monopoly with absolutely no competition C) A firm that is the only controller of a key resource necessary for production D) A firm that enjoys some monopolistic power, but faces strong competition from its rivals
If you buy an insurance policy with a high deductible and co-payments, you would end up paying
a. A higher premium b. A lower premium c. The premium of a low risk individual d. Both B&C
Under perfect competition, regarding short-run profit, a firm may find itself losing money. This is true because
A. the firm was unable to pick the output that maximized profit. B. the market conditions make the highest possible profit a negative number. C. the demand for its product is strong. D. the firm could not produce enough output to make a profit.
The "efficiency of the payments mechanism" refers to
a. the ease and speed of exchanging money for goods and services. b. how fast member banks replenish required reserves. c. how fast banks pay interest on deposit accounts. d. how fast countries pay off foreign debts.