Which Statement Is True

question 51

Multiple Choice

Which statement is true?

• A)In the United States most of our production is geared toward consumer goods.
• B)Nearly 25 percent of our national output is devoted to armaments.
• C)Japan devotes a higher proportion of its national output to armaments than we do.
• D)What gets produced in the United States is decided by a central planning board consisting of top government,corporate,and union officials.

Distinguish between movements along the demand curve and shifts of the demand curve.

Identify the factors that cause shifts in the demand curve.

Recognize the difference between normal goods and inferior goods, and how income changes affect their demand.

Understand the concept of complements and substitutes and their impact on demand.

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Definitions:

Suboptimal

A situation or outcome that is not the most efficient or desirable due to being less than the best possible choice.

Human Brain Modularity

The concept that the human brain operates through distinct regions or modules that specialize in different functions.

Heuristics

The brain’s low-energy mental shortcuts for making decisions. They are “fast and frugal” and work well in most situations but in other situations result in systematic errors.

System 1

This refers to a concept in psychology, specifically in the dual-process theory of thought, where System 1 is the fast, instinctive, and emotional way of thinking.