The present aim standard of rationality:
A. assumes that people's goals are themselves a choice variable and that people's choices about which goals to pursue are made efficiently.
B. takes people's goals as given and assumes that people are efficient at pursuing whatever goals they happen to hold at the moment of action.
C. argues that people are only able behave rationally if they are aware of how their actions affect others.
D. assumes that people act in their own self-interest because cooperating with others is irrational.
Answer: B
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Excludability matters because it:
A. allows owners to set an enforceable price on a good. B. allows consumers to control the price of a good. C. creates a perceived scarcity that allows the seller to keep the price artificially high. D. creates a perceived scarcity that causes buyers to have an inelastic demand for the good.
The government can fight inflation by manipulating both aggregate demand and aggregate supply
a. True b. False Indicate whether the statement is true or false
If the Fed sells government bonds to the public, then reserves
a. increase and the money supply increases. b. increase and the money supply decreases. c. decrease and the money supply increases. d. decrease and the money supply decreases.
One of the factors important to game theory is that firms act ______.
a. in a way to minimize damage from their competitors b. in a way to maximize the bandwagon effect c. together to achieve the same outcome as a monopolist d. together to control important inputs to their industries