The economic model of consumer behavior predicts that
A) consumers divide their time between consumption and leisure activities in order to maximize social welfare.
B) consumers will try to accumulate as many goods and services as they can before they die.
C) consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy.
D) consumers will try to earn as much income as they can over their lifetimes.
C
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If the Fed wants to stimulate the economy, ________
A) it reduces money supply B) it lowers spending C) it increases tax rates D) it lowers short-run interest rates
A group of firms that has entered into a collusive agreement to restrict output and increase prices and profits is called
A) a compliance. B) a cartel. C) an oligopoly. D) a duopoly.
Which of these indicators is probably the most politically sensitive?
A) Housing starts B) Capacity utilization C) Employment D) Car sales
Under a rule of reason approach, an act is illegal
a. only if it is shown to result in an anticompetitive outcome b. if two parties merge c. if a firm engages in price discrimination d. if two firms engage in price fixing e. if two firms undertake a joint venture