Suppose that the economy is characterized by the following behavioral equations: C = 180 +0.6YD 1=170 G= 150 T= 100 Equilibrium output (Y)= (Round your response to the nearest integer.) Total demand (Z) = (Round your response to the nearest integer.) Total demand is production
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- A student finds that his purchase of drawing pencils for art class is directly related to the amount of art paper he buys. According to behavioral economics, these art supplies would be classified as A. complements. B. independents. C. alternatives. D. substitutes.Behavioral economists assume A) 100% rationality B) Bounded rationality C) 100% irrationality D) No answer text provided.suppose the economy is characterized by the following behavioral equations: C=160+0.6YD, I=150, G=150, T=100. Solve the following variables: a). Equilibrium GDP (Y) b). Disposable income (YD) c). Consumption spending (C)
- The horizontally oriented definition of DEMAND states that "demand is the quantitites of a good that buyers are willing and able to buy at various prices in a given time interval." Which of the following statements are TRUE? If I really like a good, it does not matter how much I am able to afford to spend on it. The demand for a good is a specific amount. Demand is a behavioral relationship expressing what quantities buyers would want and be able to buy at various prices. If I can't afford to buy a product at today's available prices, I do not have a demand. The demand is all the possible price quantity combinations Demand depends on the availability of supply. Demand is a relationship between price as a variable and quantity demanded as a variable. Demand is a flow and requires a time interval be be fully understood.Assume the following behavioral equations for a macroeconomy:C = 100 + 0.9Yd, I = 50, T = 100 and G = 40. Calculate the equilibrium level of output.Plz do the both questions 1. True or False. According to behavioral economists, self-control problems generally result from poor information. 2. True or False. A key difference between neoclassical economics and behavioral economics is that in behavioral economics, context affects preferences.
- When a person buys a more fuel-efficient car or air conditioner, we often observe them using it more intensively. As a result of this behavioral response, the reduction in energy consumption is partially undone. Economists refer to this behavioral phenomenon as: Select one: a. Additionality. b. Leakage. c. The rebound effect. d. Slippage.An economics professor finds that he strictly prefers a $10 bottle of wine over an $8 bottle, and a $12 bottle over a $10 bottle, and so on, but an $8 bottle over a $200 bottle. Explain why this makes him irrational according to a behavioral economics theory.Suppose that a consumer has a choicebetween two goods, X and Y. If the price of X is $2 and the priceof Y is $3, how much of X and Y does the consumer purchaseper period, given an income of $17 per period? Use the followinginformation about marginal utility:Units MUX MUY1 10 52 8 43 2 34 2 25 1 2
- 33. Suppose MRSx,y = MUx/MUy = 0.1(a) If the consumer substitutes 10 units of X for one unit of Y, then the utility remainsunchanged(b) Regardless of prices, the consumer will only consume Y(c) If the consumer substitutes 1 unit of Y for 0.1 unit of X, then the utility remainsunchanged(d) Regardless of prices, the consumer will only consume XEmma has a utility function U(x1, x2, x3) = log x1 + 0.8 log x2 + 0.72 log x3 over her incomes x1, x2, x3 in the next three years. This is an example of (A) expected value; (B) quasi-hyperbolic utility function; (C) standard discounted utility; (D) none of the above. Emma’s preferences can exhibit which of the following behavioral patterns? (A) preference for flflexibility; (B) context effffects; (C) time inconsistency; (D) intransitivity.Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today? Please provide a detailed discussion. I will not give a positive rating for vague responses.