The concept of loss aversion is:
A. preferring certain outcomes over uncertain ones.
B. a general tendency for people to put more effort into achieving gains than avoiding losses.
C. a general tendency for people to put more effort into avoiding losses than achieving gains.
D. a spectrum of tolerance for risky situations.
C. a general tendency for people to put more effort into avoiding losses than achieving gains.
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Many economists conclude that in-kind income programs have served to reduce levels of inequality significantly from the levels suggested by aggregate income statistics
a. True b. False Indicate whether the statement is true or false
Briefly describe the difference between a straight line production possibilities curve and a convex production possibilities curve.
What will be an ideal response?
If market signals result in pollution beyond the optimal level, then
A. The economy experiences government failure. B. The government is allocating resources inefficiently. C. The market mechanism has failed to achieve efficiency. D. A laissez faire approach will reduce the level of pollution.
According to the Cost-Benefit Principle, you should spend an additional hour studying for an exam if, and only if,:
A. the benefits of studying for an additional hour are really high. B. you have time to study for an additional hour. C. the benefits of studying for an additional hour are higher for you than for anyone else in your class. D. the benefits of studying for an additional hour exceed the costs of studying for an additional hour.