Answer the following statement true (T) or false (F)
1) A key difference between neoclassical economics and behavioral economics is that in
behavioral economics context affects preferences.
2) Behavioral economics observes that people generally do not act according to their self-
interest.
3) Neoclassical economics and behavioral economics both recognize that people make errors in
their decision making.
4) According to behavioral economics, temptation to make harmful decisions can be overcome by presenting decision makers with better information and more options.
1) T
2) F
3) T
4) F
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Economies of scale and limited demand can form a natural barrier to entry that can create a natural oligopoly
Indicate whether the statement is true or false
In a developing economy, scarcity of capital may have more to do with a lack of incentive for citizens to save and invest productively than with any absolute scarcity of income available for capital accumulation.
Answer the following statement true (T) or false (F)