It is assumed in economics that people make decisions based upon
A) altruism.
B) rational self-interest.
C) tradition.
D) perfect information about every aspect of the world.
Answer: B
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People will want to hold less money if the price level
a. increases or if the interest rate increases. b. decreases or if the interest rate decreases. c. increases or if the interest rate decreases. d. decreases or if the interest rate increases.
In a two-country world (consisting of country X and country Y), an increase in Real GDP in country X will shift country Y's AD curve leftward
Indicate whether the statement is true or false
In the United States, what percentage of businesses are sole proprietorships?
a. 10% b. 25% c. 50% d. 75%
If demand is elastic, a price reduction will lead to an increase in total revenue.
Answer the following statement true (T) or false (F)