According to behavioral economists, the human brain:
A. makes most decisions based on careful calculation of benefits and costs.
B. uses evolutionary-developed heuristics to make many decisions.
C. only develops heuristics for decision making after the same decision has been made
multiple times using a rational framework of comparing benefits and costs.
D. employs heuristics in decision making that are slow but generally error-free.
Answer: B
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A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.12 to 0.08 while raising the number of accidents per period from 400,000 to any more than
A) 480,000. B) 600,000. C) 660,000. D) 770,000.
Place point X on the graph to indicate an unemployment rate of 10 percent.
If the government runs an ad campaign to shame litterers, they are:
A. trying to get individuals to internalize the negative externality created by their decision to litter. B. using protectionist policy to help the trash-collecting industry. C. wasting a lot of money. D. All of these statements are true.
The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working-age population. The combined effect can best be shown by a
A) movement from point W to point X. B) movement from point Y to point Z. C) movement from point Y to point X. D) movement from point W to point Z.