A rational choice is one that:
A. allows individuals to reach their goals.
B. involves the use of strategic decision making in an effort to reach a goal.
C. does not involve self-interested behavior.
D. is usually optimized when decision makers are poorly informed about alternatives
A. allows individuals to reach their goals.
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Suppose Joe is maximizing total utility within his budget constraint
If the price of the last pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent, the extra satisfaction received from the last shirt must be A) 2,000 units of utility. B) 500 units of utility. C) 100 units of utility. D) 80 units of utility.
Inflation tax is
A) the sales tax. B) a tax on nominal goods. C) a special tax introduced in the 1970s to fight inflation. D) the revenue from seigniorage.
Which of the following is the objective of expansionary monetary policy?
a. An increase in employment. b. A decrease in employment. c. An increase in the velocity of money. d. An increase in prices proportional to the rise in the money supply.
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, resulting in
a. excess demand or shortages. b. excess supply or surpluses. c. equilibrium prices. d. price controls.