When studying individuals' economic behavior, economists assume that
A) individuals understand the rationale for all their actions.
B) individuals act as if they were rational.
C) only educated people act as if they were rational.
D) self-interest is of limited relevance in predicting an individual's actions.
B
You might also like to view...
According to the above table, if real Gross Domestic Product (GDP) is $25,000, planned saving equals
A) $2,000. B) $3,000. C) $4,000. D) $5,000.
According to the graph shown, if the government decides to increase its spending, it is most likely at point:
A. C
B. B
C. D
D. It's impossible to tell without more information.
The best explanation of a QALY is that it:
a. incorporates quality-of-life improvements and length-of-life extensions into one measure. b. measures life-years saved in a straightforward way. c. measures quality-of-life improvements from an intervention. d. measures quality-of-life improvements from randomized control trial data.
Let P be the price of a good and let I represent consumer income. Which of the following demand functions represents a luxury good with inelastic price response?
A) log(Q) = 4 – 2 log(P) + 2 log(I) B) log(Q) = 4 - 0.5 log(P) + 0.25 log(I) C) log(Q) = 4 - 0.25 log(P) + 2 log(I) D) log(Q) = 4 + 2 log(P) + 0.2 log(I)