Multiple Choice
Which of the following is the best example of rational behaviour?
A) People are overconfident.
B) People carefully consider all options.
C) People are reluctant to change their mind.
D) People give weight to a small number of vivid observations.
E) People use rules of thumb or shortcuts in making decisions.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: The more difficult it is to substitute
Q19: The consumer's optimal purchase of any two
Q20: Using the graph shown, construct a demand
Q21: Nathalie is maximizing total utility while consuming
Q22: Why are many purchase decisions irrational?
Q24: Indifference curves for perfect substitutes are<br>A) right
Q25: Indifference curves tend to be bowed inward
Q26: Indifference curves tend to be bowed inward
Q27: If the price of a good falls
Q28: Explain the income and substitution effects.