Harold has always driven cars made by Universal Motors. The last two Universal Motors cars that Harold purchased have had major engine problems resulting in Harold incurring significant cost. Consumer Reports has consistently given Universal Motors poor
ratings. Still, Harold plans to purchase another Universal Motors car next fall. Harold's behavior is an example of which systematic mistake that people make?
People are reluctant to change their minds.
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You want to invest in a firm whose profits show large fluctuations throughout the business cycle. Which of the following would you invest in?
A) A corporation that depends heavily on business fixed investment B) A corporation that depends heavily on consumer services C) A corporation that depends heavily on consumer nondurables D) A corporation that depends heavily on government purchases
The careful historian, in studying an institution like slavery and in striving for objectivity, will give special attention to all of the following except
(a) Those processes which recur over time and which continually motivated the institution (b) A theory which provides understanding of the cause-and-effect relationships involved (c) The background conditions of the period (d) All of the above statements must be given special attention
The law of demand states that a lower price increases the amount of a commodity that people are willing to buy
a. True b. False Indicate whether the statement is true or false
When income increases the slope of an individual's demand curve, the demand curve
a. turns positive. b. becomes undefined. c. remains negative. d. becomes infinite.