A person who is, all else equal, more willing to throw away a $20 shirt than a $200 shirt, even if both are worn out, is:
A. dynamically inconsistent.
B. dynamically consistent.
C. demonstrating sunk cost fallacy.
D. demonstrating pre-commitment.
C. demonstrating sunk cost fallacy.
Economics
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One of the most widely followed stock indexes in the United States is the S&P 500. This index represents
A) the stock prices of the 500 most valuable firms worldwide. B) the stock prices of more than 4,000 U.S. firms. C) the stock prices of 500 large U.S. firms. D) the stock prices of 30 large U.S. corporations.
Economics
Assumptions for economic theories and models should be
A) rejected if they are not totally realistic. B) logical rather than empirically testable. C) simple and reasonable rather than complex. D) maintained until overwhelming evidence to the contrary occurs.
Economics