Answer the following questions true (T) or false (F)
1. A common mistake made by consumers is the failure to take into account the sunk costs of their actions.
2. The endowment effect is the tendency of people to be unwilling to sell a good they already own even if they are offered a price greater than they would be willing to pay to buy the good if they did not already own it.
3. Behavioral economics is the study of situations in which people make rational choices.
1. TRUE
2. TRUE
3. FALSE
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Economists began to lose confidence in the Phillips curve during the:
a. 1930s. b. 1960s. c. 1970s. d. 1980s. e. 1990s.
The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market
A) above; above B) above; below C) below; above D) below; below