The study of decision making that assumes people are rational in a broad sense, even if they do not have complete and perfect information is called _____
a. rational economics
b. reasonable economics
c. understandable economics
d. behavioral economics
e. optimal economics
d
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A firm's price rises. As a result, the
A) supply of labor to the firm decreases, that is, the labor supply curve shifts leftward. B) supply of labor to the firm increases, that is, the labor supply curve shifts rightward. C) demand for labor by the firm increases, that is, the labor demand curve shifts rightward. D) demand for labor by the firm decreases, that is, the labor demand curve shifts leftward.
If the Fed wishes to reduce inflation then it should
a. increase the discount rate. b. decrease reserve requirements. c. buy government securities on the open market. d. Do any of the above.
The opportunity cost of choosing an alternative
a. is the value of the highest valued alternative forgone as the result of the choice. b. includes only the amount of time spent on whatever is chosen. c. includes only the money cost of the option. d. is irrelevant for most choices individuals face.
If firms in a competitive market are identical, the long-run market supply curve is horizontal
Indicate whether the statement is true or false