The second stage of economic analysis includes asking
a. if the process an individual uses to make decisions is rational or not.
b. what may cause preferences to change.
c. how the optimal solution would change if constraints change.
d. what other criteria might be used to evaluate an outcome.
c. how the optimal solution would change if constraints change.
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An economy that trades with the rest of the world is a(n) ________.
A. command economy B. closed economy C. open economy D. trade economy
Projections place world population by 2050 at
(a) between 4 and 6 billion. (b) between 6 and 8 billion. (c) between 8 and 10 billion. (d) between 10 and 12 billion.
The law of demand refers to the:
a. negative relationship between the price of a good and the willingness of producers to sell it. b. price increase that results from an increase in demand c. inverse relationship between the price of a good and the quantity demanded. d. increase in the quantity of a good made available when its price increases.
A significant example of a temporary tax cut was the one announced in 1992 by President George H. W. Bush. The effect of that tax cut on consumer spending and aggregate demand was
a. zero. b. likely smaller than if the cut had been permanent. c. likely about the same as if the cut had been permanent. d. likely larger than if the cut had been permanent.