Lily wants to invest in the stock market. She notices that the share price for Widgets Inc. has been falling for weeks. She chooses to invest in Widgets Inc. because she assumes it is due for a rebound. Lily suffers from:
A. the hot-hand fallacy.
B. the gambler's fallacy.
C. irrational exuberance.
D. the sunk cost fallacy.
B. the gambler's fallacy.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Plastics manufacturers can make either toys or plastic containers. If the prices and profitability of plastic toys increase, then the:
A. Demand for plastic containers will decrease B. Supply of plastic containers will increase C. Demand for plastic containers will increase D. Supply of plastic containers will decrease
When two goods are complementary goods, as the price of one of the goods goes ______, the quantity demanded of the other goes ______.
A. down; down B. up; up C. up; down D. down; neither up nor down
What was the labor force participation rate in 2004 in Table 6.1?Table 6.1?200420052006Working Age Population200 million225 million275 millionLabor Force150 million165 million200 millionUnemployed5 million15 million35 million
A. 75.0 percent. B. 133.3 percent. C. 77.5 percent. D. 18.3 percent.