A typical behavior that violates the assumption of rational behavior is:
A. saying you want to lose weight, but ordering dessert.
B. being willing to pay more for something if you use a credit card than if you use cash.
C. stubbornly watching to the end of a movie you've decided you're not enjoying at all.
D. All of these demonstrate irrational behavior.
D. All of these demonstrate irrational behavior.
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The used car market without warranties suffers from
A) perfect competition. B) oligopoly. C) adverse selection and moral hazard. D) excessive signaling.
If an investor's primary stock holding is currently Exxon Mobil, the purchase of which of the following stocks would provide the investor with the largest reduction in risk?
a. BP / Amoco. b. Shell Oil Corporation. c. General Motors. d. Texaco.
What effect do protectionist policies have on the trade deficit?
An increase in expected inflation shifts
a. the long-run Phillips curve right. b. the short-run Phillips curve right. c. neither the short-run nor long-run Phillips curve right. d. both the short-run and long-run Phillips curve right.