The default effect
A. refers to the observation that people tend to value something more highly when they own it than when they don't.
B. refers to the observation that people tend to value something more highly when they don't own it than when they do.
C. refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default.
D. refers to the observation that people do not have a strong attachment to the status quo.
C. refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default.
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Answer the following statements true (T) or false (F)
1. The production function relates outputs to inputs. 2. The marginal product is the increase in output per additional unit of input. 3. The marginal product decreases, reaches a minimum, and then rises as output increases. 4. As long as the marginal product is falling, the average product falls. 5. The average product decreases any time the marginal product is decreased.
According to Edward Kane, because the banking industry is one of the most ________ industries in America, it is an industry in which ________ is especially likely to occur
A) competitive; loophole mining B) competitive; innovation C) regulated; loophole mining D) regulated; innovation
Maria goes shopping for wedding shoes and is willing to pay $50 . She pays only $20 because the shoes she wants are on sale. Does she gets a consumer surplus? If so, how much?
a. yes, $50 b. yes, $20 c. yes, $70 d. yes, $30 e. no, there is no consumer surplus because the price was a sale price
During 2011, the price level in the U.S. rose at a faster rate than the price level in Japan. Other things the same, according to purchasing-power parity, this difference in inflation rates should have caused
a. the nominal exchange rate of the dollar to appreciate relative to the yen. b. the real exchange rate of the dollar to appreciate relative to the yen. c. the nominal exchange rate of the dollar to depreciate relative to the yen. d. the real exchange rate of the dollar to depreciate relative to the yen.