Which of the following statements is correct? Real GDP is the total market value of the final goods and services produced in America for sale in a year valued in the prices of
Chapter 1 What is Economics? Test bank MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1)An incentive. Power Generation Economics: Multiple Choice Questions. Multiple Choice Questions of Economics of Power Generation (): The frequency of the wave shown in the figure below is A consumer takes a steady load of kW at a power factor of lagging for 8 hours per day and days per annum. Kelly O'Dwyer's considered response on Q&A to questions about the rich v poor divide neatly illustrates what this election, in economic terms, is really all about, writes Michael Bradley.
Nudge theory Richard Thalerwinner of the Nobel Prize in economics Nudge is a concept in behavioral sciencepolitical theory and economics which proposes positive reinforcement and indirect suggestions as ways to influence the behavior and decision making of groups or individuals.
Nudging contrasts with other ways to achieve compliance, such as educationlegislation or enforcement. The concept has influenced British and American politicians.
The first formulation of the term and associated principles was developed in cybernetics by James Wilk before and described by Brunel University academic D.
Stewart as "the art of the nudge" sometimes referred to as micronudges . It also drew on methodological influences from clinical psychotherapy tracing back to Gregory Batesonincluding contributions from Milton EricksonWatzlawickWeakland and Fisch, and Bill O'Hanlon.
It also gained a following among US and UK politicians, in the private sector and in public health. A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.
To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not.
In this form, drawing on behavioral economics, the nudge is more generally applied to influence behaviour. One of the most frequently cited examples of a nudge is the etching of the image of a housefly into the men's room urinals at Amsterdam's Schiphol Airport, which is intended to "improve the aim".
In other words, a nudge alters the environment so that when heuristic, or System 1, decision-making is used, the resulting choice will be the most positive or desired outcome. Regarding its application to HSE, one of the primary goals of nudge is to achieve a "zero accident culture".
These companies are using nudges in various forms to increase the productivity and happiness of employees. Recently, further companies are gaining interest in using what is called "nudge management" to improve the productivity of their white-collar workers.
Tammy Boyce, from public health foundation The King's Fundhas said: Ethicists have debated this rigorously. Similarly, legal scholars have discussed the role of nudges and the law.
Behavioral finance[ edit ] Robert J. Shillerwinner of the Nobel Prize in economics The central issue in behavioral finance is explaining why market participants make irrational systematic errors contrary to assumption of rational market participants. The study of behavioral finance also investigates how other participants take advantage arbitrage of such errors and market inefficiencies.
Behavioral finance highlights inefficiencies, such as under- or over-reactions to information, as causes of market trends and, in extreme cases, of bubbles and crashes. Such reactions have been attributed to limited investor attention, overconfidence, overoptimism, mimicry herding instinct and noise trading.
Technical analysts consider behavioral finance to be behavioral economics' "academic cousin" and the theoretical basis for technical analysis. Loss aversion appears to manifest itself in investor behavior as a reluctance to sell shares or other equity if doing so would result in a nominal loss.
Benartzi and Thaler, applying a version of prospect theoryclaim to have solved the equity premium puzzlesomething conventional finance models so far have been unable to do. Quantitative behavioral finance[ edit ] Quantitative behavioral finance uses mathematical and statistical methodology to understand behavioral biases.
In marketing research, a study shows little evidence that escalating biases impact marketing decisions. Thaler's model of price reactions to information, with three phases underreaction, adjustment, and overreactioncreating a price trend. One characteristic of overreaction is that average returns following announcements of good news is lower than following bad news.
In other words, overreaction occurs if the market reacts too strongly or for too long to news, thus requiring an adjustment in the opposite direction. As a result, outperforming assets in one period is likely to underperform in the following period.The multiple-choice item consists of two parts: (a) the stem, which identifies the question or problem and (b) the response alternatives.
Students are asked to select the one alternative that best completes the statement or answers the question. ECONOMICS EXAM 2 SECTION A – continued SECTION A – Multiple-choice questions Instructions for Section A Answer all questions in pencil on the answer sheet provided for multiple-choice questions.
Choose the response that is correct or that best answers the question.
A correct answer scores 2, an incorrect answer scores 0. Press Next to launch the quiz You are allowed two attempts - feedback is provided after each question is attempted. Multi-nationals. Many firms grow by integrating with foreign firms, which is increasingly common in the globalised world economy, and is a key part of the globalisation process.
Multiple choice is a form of an objective assessment in which respondents are asked to select only correct answers out of the choices from a list.
Multiple choice questions lend themselves to the development of objective assessment items, but without author training, questions can be subjective in nature. Multiple Choice Questions 1.
The trend from distinct national economic units and toward one huge global market is commonly referred to as: C. globalization. 2. Nov 01, · Graph 1. Unemployment in the USA, % of the labor force, monthly data. One of the central and most pressing questions of macro-economics is how to .