Credit card companies put a low "minimum required payment" on people's bills in the hope that people will send in low payments thereby allowing the card companies to earn more interest. The companies are trying to exploit the:
A. Framing effect
B. Anchoring effect
C. Confirmation bias
D. Endowment effect
B. Anchoring effect
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A country's budget constraint states that
A) the value of exports must be equal to the value of imports. B) real income in the exporting country must be equal to real income in the importing country. C) unless a country engages in trade, the value of exports cannot exceed the value of goods produced. D) a country will engage in trade only if the value of imports exceed the value of exports. E) a country will engage in trade only if the value of exports exceeds the value of imports.
Consider the above figure, which displays the situation faced by a union employed by a firm with the labor demand curve D
This union has total membership of Q3 workers, but its single wage setting goal is to maximize wages for the Q1 members with the most seniority. If the union managers accomplish this goal, what occurs? A) All of the union members will be employed at the wage rate W3. B) All of the union members will be employed at the wage rate W1. C) The senior members of the union will receive a wage equal to W3, but Q3 union members will be unemployed. D) The select group of senior union members will have work and receive a wage of W3, but Q3 -Q1 union members will not be employed by the firm.
Randomized controlled trials:
A. choose people randomly to measure the impact of a particular intervention, saving the cost of evaluating all participants. B. randomly assign people into control and treatment groups in order to focus on the impact of a particular intervention. C. control how much of a treatment is given to each participant in order to measure the ideal quantity. D. are not a useful tool in assessing how specific interventions may influence economic development.
Consider the labor market in an industry that is initially in equilibrium. Which of the following will result when a government policy suddenly forces firms in this industry to improve their working conditions?
a. The labor supply curve will shift to the right and exert a downward pressure on the wage rate. b. The labor supply curve will shift to the left and exert an upward pressure on the wage rate. c. The labor demand curve will shift to the right and exert an upward pressure on the wage rate. d. The labor demand curve will shift to the left and exert an upward pressure on the wage rate.