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Chapter 1: Part (c) (page 7)
Why do you suppose that second-and third-generation females of U.S. immigrant families are found to be more likely to accept working alongside males in higher-paying jobs?
This is because the women respond to behavioral economics in the workplace.
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For each of the following approaches that an economist might follow in examining a decision-making process, identify whether the approach relies on the rationality assumption or on the assumption of bounded rationality:
(a) To make predictions about how many apps a person will download onto her tablet device, an economist presumes that the individual faces limitations that make it impossible for her to examine every possible choice among relevant apps.
(b) In evaluating the price that an individual will be willing to pay for a given quantity of a particular type of healthcare service, a researcher assumes that the person considers all relevant health care options in pursuit of his own long-term satisfaction with resulting health outcomes.
(c) To determine the amount of time that a person will decide to devote to watching online videos each week, an economist makes the assumption that the individual will feel overwhelmed by the sheer volume of videos available online and will respond by using a rule of thumb.
How might Figure support the argument that higher incomes associated with greater levels of educational attainment provide an incentive for women to have more children?
Write a sentence contrasting positive and normative economic analysis.
Evaluate the role that rational self-interest plays in economic analysis.
What would be the appropriate change in the U.S. degree of plastic-waste cleanliness if the marginal cost of pollution abatement is higher than the associated marginal benefit?
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