When we say that an individual behaves according to "rational self-interest," we mean that this individual
A. is motivated by greed.
B. will always buy the most fashionable items available.
C. is making choices that he or she believes will leave him or her better off.
D. never considers the well being of any other individual.
Answer: C
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2.2 "Supply-Side" Economics
What will be an ideal response?
If a linear, two-good production possibilities curve has a slope of ?2, then:
A. having an additional unit of the good measured on the vertical axis means giving up ½ of a unit of the good measured on the horizontal axis. B. you have an absolute advantage in the good measured on the vertical axis. C. having an additional unit of the good measured on the vertical axis means giving up 2 units of the good measured on the horizontal axis. D. you have a comparative advantage in the good measured on the vertical axis.
There is a trade-off between:
A. Saving and investment B. Current production and future consumption C. Current consumption and future consumption D. Consumption and spending
What is the definition of a discouraged worker?
A. a person who has dropped out of the labor force because he is discouraged about his prospects for employment B. an employed member of the labor force who is discouraged about his pay C. a member of the labor force who is working but is discouraged about his prospects for advancement within the company D. a member of the labor force who is working but is discouraged about the performance of his company within the industry