One of the Findings of Studies in Behavioral Economics Is

question 33

Multiple Choice

One of the findings of studies in behavioral economics is that:

• A) business cycles have no impact on consumption patterns.
• B) Ricardian equivalence is more prevalent than previously thought.
• C) transitory income has no effect on consumption.
• D) consumption is more sensitive to current income changes than suggested by the permanent-income hypothesis.
• E) people tend to put greater emphasis on future income than on current income.

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Definitions:

Frequency

The number of complete wavelengths that pass a point in a given time (for example, per second).

Daily Exercise

Engaging in physical activity on a regular basis to maintain or improve health and fitness.

Operant Behavior Specialists

Professionals who apply the principles of operant conditioning in therapeutic, educational, or organizational settings to modify behavior.

Preparedness

A biological predisposition to learn associations, such as between taste and nausea, that have survival value.