Which of the following terms did Nobel laureate Herbert Simon coin?
a. anchoring
b. bounded rationality
c. framing
d. rule of thumb
b. bounded rationality
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Refer to Table 20.1. The income tax in Oceania is
A) progressive. B) regressive. C) proportional. D) a flat tax.
According to the Weber-Fechner law, the perceived change in any stimulus:
A. is larger when the change is large in proportion to the original stimulus. B. is larger when the change is small in proportion to the original stimulus. C. does not depend on the size of the change in proportion to the original stimulus. D. is zero regardless of the size of the original stimulus.
The law of demand states that there is
A) an inverse relationship between income and quantity demanded, ceteris paribus. B) a direct relationship between income and quantity demanded, ceteris paribus. C) no relationship between taste and quantity demanded, ceteris paribus. D) an inverse relationship between price and quantity demanded, ceteris paribus.
Which of the following would NOT be an example of a technological change?
A. Google develops a new way to perform Internet searches that makes searches produce more relevant results. B. A team of nuclear scientists develop a new way of generating nuclear power that is safer than the older methods but is more expensive to implement. C. The government passes a law expanding the funding available to NASA and other agencies concerned with the advancement of basic science. D. A pharmaceutical company develops a new drug that effectively fights malaria.