When recessions occur, advocates of small government should recommend
A. reductions in the number of federal employees.
B. reductions in transfer payments.
C. reductions in taxes.
D. increases in transfer payments and government spending.
Answer: C
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Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making. B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources. C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption. D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
Why is the indifference curve convex or bowed inward?
A. As you consume more of one good you are willing to give up less of the other good. B. As you consume less of one good you are willing to give up less of the other good. C. As you consume more of one good you are willing to give up more of the other good. D. As you consume more of one good you are willing to give up half of the other good.