A consumer prefers market basket A to market basket B, and prefers market basket B to market basket C. Therefore, A is preferred to C. The assumption that leads to this conclusion is:
A) transitivity.
B) completeness.
C) all goods are good.
D) diminishing MRS.
E) assumption of rationality.
A
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International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________
A) does not, the level of complexity of international issues is unique B) does not, the interactions associated with international economic relations is highly mathematical C) does not, international economics takes a different perspective on economic issues D) does not, international economic policy requires cooperation with other countries E) does, the motives and behavior of individuals are the same in international trade as they are in domestic transactions
Which of the following is true of nominal GDP?
a. It acts as an indicator of the general price level in the economy. b. It measures the real level of output in the economy. c. It measures national output based on the current year's prices. d. It tends to rise by a smaller amount than real GDP when the general price level increases. e. It measures changes in the output of intermediate goods and services.
According to the monetarists, the velocity of money is
A. constant by definition. B. highly variable and unpredictable. C. constant as a matter of empirical proof. D. not constant but predictable.
According to the classical view, the economy will not self-adjust to deviations from its long-term growth trend.
Answer the following statement true (T) or false (F)