If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to

A) see whether it generates accurate predictions about the choices of business people.
B) ask business people whether it is true or not.
C) find out whether U.S. businesses are more profitable than European businesses.
D) take a survey of people and see if they agree with this assumption.


Answer: A

Economics

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Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the

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If workers received a 5 percent wage increase and the rate of inflation was 3 percent, then their real wage:

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Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that his total revenues change according to the number of workers he hires, as shown in the table below.WorkersTotal Revenue1$1,00021,40032,00041,6005800What is the marginal revenue product of the third worker?

A. $667 B. $6,000 C. $400 D. $600

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