Individuals acting with self-interest:
a. always choose the same options as other rational individuals.
b. never do voluntary work.
c. always try to attain satisfaction at the expense of others.
d. choose options that give them the greatest amount of satisfaction.
e. have a perfectly elastic demand curve.
d
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While eating at Alex's "Pizza by the Slice" restaurant, Clara experiences diminishing marginal utility. She received 10 utils from consuming the first slice of pizza and would only receive 5 utils from consuming a second slice, at the same price. Based on this information we can conclude that
A. Even if Clara buys a second slice, she will not buy a third slice. B. Clara will not eat a second slice, even if it is given to her at no charge. C. Alex may have to lower the price to convince Clara to buy a second slice. D. Clara will definitely want to buy a second slice of pizza.
When contractionary monetary policy increases the interest rate, it causes the price level to:
A. decrease, and output to decrease. B. rise, and output to increase. C. decrease, and output to increase. D. rise, and output to decrease.
The demand for labor is a derived demand. Employers hire workers until the
a. wage rate equals the average product of labor. b. wage rate equals the marginal revenue product of labor. c. last worker hired adds nothing to total output. d. average product of labor is zero.
Refer to the graph above. Which of the following factors will shift AS 1 to AS 2?
An increase in input prices A decrease in business taxes An increase in real interest rates A decrease in business subsidies