What assumption about human motivation is made in economics? Explain
What will be an ideal response?
Economists assume that people act as if motivated by self-interest. People respond predictably to opportunities for gain. That is, people look out for their own self-interest and do so in a rational manner.
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Scarcity results from the fact that
A) people's wants exceed the resources available to satisfy them. B) not all goals are desirable. C) we cannot answer the major economic questions. D) choices made in self-interest are not always in the social interest. E) the population keeps growing.
A ________ can price discriminate if, in part, it ________
A) natural monopoly; is the only seller of a good or service B) monopoly; can prevent resales of its product C) monopoly; is the only seller of a good or service D) perfectly competitive firm; can sell goods at a lower price than a monopoly E) perfectly competitive firm; changes from a price taker to a price maker
In the long run, a perfectly competitive firm will earn ________ profits
a. negative economic b. zero economic c. positive accounting d. negative accounting
If laborers become more efficient over time, and if Company X would want to expand production, it would
A. substitute capital for labor. B. produce less product. C. hire more laborers. D. hire fewer laborers.