In Their Surveys of Consumers, Daniel Kahneman, Jack Knetsch and Richard

question 167

Multiple Choice

In their surveys of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler found that

• A)most people considered it unfair for firms to raise their prices because of an increase in their costs, but fair to raise their prices after an increase in demand.
• B)most people considered any increase in price to be unfair as it led to an increase in profits.
• C)most people believed that low-income people were hurt most by increases in prices.
• D)most people considered an increase in price by firms following an increase in their costs to be fair but believed it was unfair for firms to raise their prices because of an increase in demand.

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Definitions:

Productivity

The efficiency with which an organization or individual converts inputs into outputs, often measured as the amount of goods or services produced per unit of input.

Social Setting

The physical and social context in which people live, work, or interact, influencing their behavior, interactions, and perceptions.

Illumination

The provision of light, making something visible or brightened, or the process of clarifying and making something understood.

Productivity

The measure of how efficiently resources are used to produce goods and services.