When observing people making choices that do not at first appear to be rational, an economist will ask,
a. "How might a psychologist explain this behavior?"
b. "Why do we economists keep believing that people behave rationally?"
c. "How might such behavior be serving someone's purposes?"
d. "What is wrong with these people?"
c. "How might such behavior be serving someone's purposes?"
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If the Federal Reserve lowers the required reserve ratio, people will end up taking out ________ because the interest rates ________
A) more loans; will rise B) the same number of loans; will not change C) more loans; will fall D) fewer loans; will rise E) fewer loans; are controlled by the economic conditions alone
The highest price you are willing to pay for a pair of jeans is $20 . However, you are able to purchase it for $14 . This implies $6 is the producer surplus
Indicate whether the statement is true or false
What percentage of the non-farm labor force in the United States belonged to a labor union in 2012?
a. less than 10 percent b. approximately 11 percent c. approximately 28 percent d. more than 40 percent
If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%
a. True b. False Indicate whether the statement is true or false