When we study choice architecture, we recognize that people make:
A. choices which always maximize their well-being.
B. mistakes in seemingly random ways.
C. mistakes in common and predictable ways.
D. choices that rarely maximize their well-being.
Answer: C
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Tax laws treat all in-kind payments as taxable income to the employers
a. True b. False
To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:
A. downward-sloping. B. upward-sloping. C. horizontal. D. vertical.
Economists call the pursuit of a transfer of wealth through government at someone else's expense:
A. the paradox of voting. B. adverse selection. C. rent-seeking behavior. D. the benefits-received principle.
PPP holds better for ________ countries
A) low-inflation B) poor C) rich D) high-inflation