Which of the following statements is true?
A) An optimizing individual is also likely to exhibit rationality.
B) Optimization requires individuals to foresee the future perfectly.
C) The less information that is available, the easier it is to make optimal decisions.
D) An optimizing individual need not consider the risks involved in various choices.
A
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Which of the following statements is true of marginal analysis?
A) Marginal analysis is a tool used in optimization in levels. B) Marginal analysis compares the consequences of doing one more step of something. C) Marginal analysis of alternatives will mostly give an outcome different from optimization in levels. D) Marginal analysis involves the calculation of total net benefits of all the available alternatives.
A bank's costs include all of the following EXCEPT
A) the interest it pays to depositors. B) the interest it pays on its loans or debt. C) the cost of providing services. D) the fees paid to maintain its reserve at the Federal Reserve.
Unanticipated inflation penalizes: a. those who are saving
b. those who are borrowing. c. governments. d. those who are in high-growth industries where wages are growing faster than prices. e. those who can't find jobs at any wage rate.
Studies show that __________ households tend to save more of their income than others, and also show that ____________ households save more out of tax cuts than others do.
A. richer; poorer B. richer; richer C. poorer; richer D. poorer; poorer