The term self-interest, as viewed by economists, means that:
a. consumers never pay more for a good simply because it carries a certain designer label.
b. only economists are capable of making choices according to rational self-interest.
c. people never act in their self-interest until they have perfect information.
d. consumers always seek the least expensive option when making a purchase, regardless of individual preferences.
e. people make choices that, given the information available, gives them the greatest amount of satisfaction.
e
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The minimum percent of deposits that banks must hold and cannot loan is determined by the
A) interest rate. B) discount rate. C) required reserve ratio. D) federal funds rate. E) ratio of M2 to M1.
In the scenario above, as a result of increased advertising, Talbot's markup
A) decreases by $100. B) increases by $50. C) increases by $75. D) decreases by $60.
Human capital differs from physical capital in that
A. human capital is intangible. B. human capital is tangible. C. physical capital is intangible. D. human capital has no cost to acquire.
If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound, then:
A. the dollar has appreciated in value. B. Americans will import more British goods. C. the British will buy fewer U.S. goods. D. the dollar has depreciated in value.