How might a person who lacks self-control behave differently than a rational consumer?
a. He would not try to maximize his marginal utility.
b. He would overvalue the opinions of his friends.
c. He would discount the future value of behaviors.
d. He would be biased by the information he hears first.
c. He would discount the future value of behaviors.
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Two factories make wooden chairs. If the workers in factory A make each chair from start to finish and the workers in factory B divide labor, one would assume
A) the chairs in factory A are of higher quality. B) the workers in factory B have more job satisfaction. C) factory B can take advantage of division of labor and produce more efficiently. D) factory A can take advantage of division of labor and produce more efficiently.
If there is a dollar-for-dollar direct expenditure offset, then
A) increases in aggregate demand will also increase long-run aggregate supply. B) increases in government spending will not increase aggregate demand. C) increases in aggregate demand will increase the price level, but leave real output unchanged. D) increases in aggregate demand will increase real output, but leave the price level unchanged.