A defense for the assumption that consumers maximize is that
A) consumers never make mistakes.
B) consumers do not consistently make the same mistakes.
C) it allows for many possible outcomes.
D) mistaken consumers may receive counseling from the government.
B
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What is a business cycle? What are its phases and turning points?
What will be an ideal response?
The US government began tracking poverty in the late:
A. 1950s. B. 1960s. C. 1970s. D. 1940s.
If the economy moves into recession, monetarists argue that the Fed should
A. Keep the money supply growing at a constant rate B. Keep the money supply fixed C. Increased the federal funds rate
The invisible hand refers to
A. Intervention in the economy by the government bureaucrats we do not see and over whom we have no control. B. The person who has the responsibility to coordinate all the markets in a market economy. C. Undiscovered natural resources. D. The allocation of resources by market forces.