The assumption of rational self-interest means that economic decision makers
a. have no concern for the welfare of others
b. consider the welfare of others to be more important than their own happiness
c. know with certainty which choice will have the best result
d. make reasonable decisions based on their expectations of results
e. do not make incorrect decisions or bad choices
D
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The above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?
A) Figure A B) Figure B C) Figure C D) Figure D
Purchasing a profitable supplier increases profits only if
a. You pay equal to the company's discounted future profits b. You pay higher than the company's discounted future profits c. You pay lower than the company's discounted future profits d. None of the above
To derive the law of demand, we assume that
A. marginal utility is constant. B. prices are constant. C. tastes are constant. D. real prices are constant.
MACROSOFT's top management is contemplating the development and marketing of three new software products (a word processor, a spreadsheet application, and a web browser). However, it needs to decide whether to launch them separately or as a package. The CEO proposes to delegate the decision to a team formed with representatives from each department. Why does this proposal make economic sense?
A. Their differences are likely to prove to be advantageous to the management. B. They are likely to make a more informed decision. C. Ultimately, they are the ones who have to implement whatever decision is made, so one might as well ask their opinion. D. If the project fails, the management will have someone to blame.