John has a math test tomorrow. He has decided to go to the gym today and then study math for several hours. Which of the following statements is TRUE?
A) John did not use the economic way of thinking because his decision on how to allocate his time did not involve money.
B) John's decision on how to allocate his time is inconsistent with the rationality assumption since he has decided to go to the gym.
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
D) John's decision does not involve his pursuit of self-interest.
Answer: C
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A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
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A) continuing production. B) closing. C) raising its price. D) cutting price.
Because the market demand curve slopes downward
a. each unit of a good is worth more than the market price b. each unit of a good is worth the market price paid for each c. each unit of a good is worth less than the previous units are worth d. diminishing marginal returns have set it e. the market is efficient