In most microeconomic models, a decision maker
A) maximizes an objective subject to a constraint.
B) faces no constraints.
C) has no clearly defined objective.
D) B and C
A
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If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, the cross elasticity is ________ and the two goods are ________
A) 2/3, substitutes B) 2/3, complements C) 3/2, complements D) 3/2, substitutes
In many business situations one firm will act first, and then other firms will respond. To help analyze these types of situations economists use
A) follow-the-leader-games. B) sequential games. C) retaliation games. D) bargaining games.
Which of the following would shift the AS curve downward?
a. A decrease in the price level b. A decrease in world oil prices. c. An increase in world oil prices. d. A natural disaster that raises unit costs for all firms. e. A loss of technological capability.
Street lights are an example of a public good provided at the local level
Indicate whether the statement is true or false