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QUESTION 40 Behavioral economics o a. uses the result of sociology observations

ID: 1116926 • Letter: Q

Question

QUESTION 40 Behavioral economics o a. uses the result of sociology observations to apply to models of individual decision-making Ob. involves people separating small losses from large losses O c. is the least controversial field of economics. d. is the most controversial field of economics o e uses the results of psychology experiments to apply to models of individual decision-making QUESTION 41 For a firm to be able to practice price discrimination, it must be a (I) a price taker. O b price practitioner c, profit maker. d price maker e cost producer. QUESTION 42 Because a product's demand for an input to its production depends on the decision to produce this product. t is alleddemand a input b. secondary @ c. production d dependent e. derived QUESTION 43 Imperfect markets O b always result in supply exceeding demand d occur when the buyer or seller has an influence on the price. a always result in demand exceeding supply c do not exist in democracies e can't occur if there are many buyers and many sellers

Explanation / Answer

Answer:- behavioral economics

Correct Answer:- uses the results of psychology experiments to apply to models of individual decision making

Reason:- behavioral finance, studies the effects of psychological, social, cognitive, and emotional factors on buying decisions

Answer:- for a firm to be able to practice price discrimination it must be able to

Correct Answer:- Price Maker

Reason:- In order to engage in price discrimination a firm must be a price-maker should be able to identify consumers who have varied elasticities

Answer:- imperfect markets

Correct Answer:- occur when buyer or seller has an influence on the price

Reason:- When the prices are governed by seller or buyer, it will be termed as an imperfect market.

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