In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities is known as
A. altruism.
B. rational behavior.
C. normative bias.
D. empiricism.
Answer: B
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In Figure 5-2, consumer’s surplus is measured by the area
A. ABC. B. OBCD. C. OACD. D. DCE.
The large number of banks in the United States is an indication of
A) vigorous competition within the banking industry. B) lack of competition within the banking industry. C) only efficient banks operating within the United States. D) consumer preference for local banks.
A profit-maximizing, price-taking firm should cease production whenever: a. the firm is making a loss
b. the firm is earning zero economic profit. c. the price is less than minimum average fixed cost. d. the price is less than minimum average variable cost.
A point inside a nation's production possibilities curve can represent:
a. a recession. b. an increase in population size. c. an economic growth. d. a technological advancement. e. an improvement in living standards.