According to the rational choice model developed in this chapter, which statement below is false?
A. Cash grants are always better than in-kind gifts.
B. Individual preference patterns do not change because prices change.
C. Consumers behave as if they did cost-benefit analysis on every purchase.
D. People would be less happy if they exchanged money rather than things at Christmas.
Answer: D
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When marginal revenue is zero:
A. total revenue is maximized. B. elasticity of demand is zero. C. total cost is minimized. D. profit is maximized.
What is the relationship between U.S. real GDP and U.S. imports?
What will be an ideal response?
The allocative function of price cannot operate unless there is:
A. either free entry or free exit. B. neither free entry no free exit. C. both free entry and free exit. D. a significant barrier to entry.
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
A. 1.4 B: 1.5 C: 1.6 D: 1.7