When making decisions, economists believe that individuals act rationally if they:
a. seek to improve their own situations and not try to anticipate future consequences of their actions
b. only pursue the goals of the community.
c. people do the best they can, based on their values and information, under current and future circumstances.
d. always choose alternatives that offer the greatest financial reward.
c
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. Stan's ideal mixture is to
A) "shoot 1" every time since Kyle is the "odd" player. B) "shoot 2" every time since he is the "even" player. C) "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) Stan's ideal mixture depends on Kyle's ideal mixture.
If there is a basic surplus and a negative total deficit, then
A) interest cost > basic surplus. B) interest cost < basic surplus. C) interest cost > positive total deficit. D) interest cost < positive total deficit.
The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
Which of the following is NOT a function of money?
A) medium of stored value B) standard of deferred payment C) unit of accounting D) store of value