Which of the following is not an assumption of the decision-making process followed by consumers to maximize utility?
A. The consumer does not consider the prices of the products.
B. The consumer behaves rationally.
C. The consumer can rank his preferences.
D. The consumer has a limited income.
Answer: A
You might also like to view...
Explain why GDP per capita varies among countries even though countries eventually converge to their balanced growth paths
What will be an ideal response?
An optimum that occurs as a corner solution
A) includes only one good. B) cannot be an equilibrium. C) cannot exhaust the budget constraint. D) includes the exact same amounts of each good.
In recent years, the number of private, for profit, _________________ has increased dramatically.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements about markets is true?
a. Market supply and demand cannot be altered by outside influences. b. In reality, markets can function only at the efficient equilibrium level. c. All competing firms have equal power and influence over activities in the market. d. Innocent bystanders are sometimes affected by the decisions of buyers and sellers.