Which of the following best describes an assumption economists make about human behavior?
A) They assume that people take into account the question of fairness in all decisions they make.
B) They assume that individuals act rationally all the time in all circumstances.
C) They assume that rational behavior is useful in explaining choices people make even though people may not behave rationally all the time.
D) They assume that individuals act randomly.
C
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If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the
A) demand for dollars decreases. B) quantity of dollars demanded decreases. C) quantity of dollars demanded increases. D) demand for dollars increases. E) demand for dollars does not change and the quantity of dollars demanded also does not change.
Economic theory defines capital as
A) anything that is scarce. B) non-human resources. C) produced resources used to produce future goods. D) resources containing a positive opportunity cost. E) stocks and bonds.
If the price level increased from 120 to 130, then what was the inflation rate?
a. 1.1 percent. b. 7.7 percent. c. 10.0 percent. d. 8.3 percent.
Consumers with higher wages have ________ opportunity costs than consumers with low wages, which means that managers should place stores ________ in areas that are frequented by high-income consumers.
A) lower; farther apart B) lower; closer together C) greater; closer together D) greater; farther apart