Prospect theory implies that individuals are risk loving over losses and risk averse over gains.
Answer the following statement true (T) or false (F)
True
Rationale: Diminishing sensitivity from the reference point implies concavity of the utility/consumption relationship above the reference point and convexity below the reference point.
Economics
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If skilled labor is ___ unskilled labor, then an influx of unskilled immigrants could ____ the demand for skilled labor
a. a substitute for; raise b. a complement to; raise c. a complement to; lower d. a complement to; substitute.
Economics
____ are unexpected temporary events that can either increase or decrease short-run aggregate supply
a. Profit effects b. Volatilities c. Supply shocks d. Misperception effects
Economics