Use the Following to Answer Questions

question 92

Multiple Choice

Use the following to answer questions :
-(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.80, there is a monthly:

• A)surplus of 140 bags.
• B)shortage of 140 bags.
• C)surplus of 70 bags.
• D)shortage of 70 bags.

---

Definitions:

Decision Making

The method of selecting options through recognizing a decision, collecting data, and evaluating different solutions.

Net Benefits

The total positive effects or gains from a decision or action minus any negative effects or costs associated with it.

Prospect Theory

A behavioral economics theory of preferences having three main features: (1) people evaluate options on the basis of whether they generate gains or losses relative to the status quo; (2) gains are subject to diminishing marginal utility, while losses are subject to diminishing marginal disutility; and (3) people are prone to loss aversion.

Salary

A form of payment from an employer to an employee, which may be specified in an employment contract.