Which of the following is NOT among the statements that critics of prospect theory have made about it?
A. It is not necessary, since expected utility theory accounts rather well for most risky choices.
B. The evidence reflects systematic mistakes that consumers might correct through experience and awareness.
C. Instead of explaining behavioral puzzles, prospect theory merely summarizes them.
D. Loss aversion has been proven to be false in many theoretical and experimental economic works.
D. Loss aversion has been proven to be false in many theoretical and experimental economic works.
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If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would
a. fall to less than one-half of its former value. b. fall, but it would still be greater than one-half of its former value. c. stay the same. d. rise but less than double.
Economists argue that in treating patients:
A. physicians should use any test or procedures that might help the patient. B. health care should not be rationed by physicians because it is an entitlement or right. C. both benefits and costs should be taken into account by physicians. D. physicians should use any test or procedure whose marginal benefit is positive.