According to behavioral economics, advertising works because it:
A. provides useful information that improves consumers' ability to make decisions.
B. exploits the self-serving bias.
C. exploits the recognition heuristic.
D. quickly communicates price changes that exploit the law of demand.
Answer: C
Economics
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Which of the following assertions is false?
A) The Great Depression was a typical business cycle. B) Very rapid growth occurred during World War II. C) Real GDP per capita dipped about 30% during the Great Depression. D) On average, the U.S. economy grows at a rate of 2.1%.
Economics
Suppliers will provide more of a good when
A) the market price increases. B) the good is a normal good. C) resource prices increase. D) there is a decrease in demand.
Economics