Behavioral assumptions
a. make economic models more complex than if these assumptions were removed
b. pertain only to consumers
c. hold all other things constant
d. are ways to test a hypothesis
e. describe how individuals are expected to behave
E
You might also like to view...
Use the above table. Assuming constant opportunity costs, the opportunity cost of producing cookies in country Alpha is ________, and the opportunity cost of producing cookies in country Beta is ________
A) 0.33 ton of coffee; 2 tons of coffee B) 3 tons of coffee; 0.5 ton of coffee C) 0.375 ton of cookies; 2.25 tons of coffee D) 2.67 tons of coffee; 0.44 ton of cookies
The belief that the velocity of money is not constant but highly predictable is associated with the:
a. classical school. b. Keynesian school. c. supply-side school. d. rational expectations school e. monetarist school.
The gasoline tax is based on the principle of
a. cost of service. b. benefit received. c. ability to pay. d. equality of sacrifice.
A decrease in autonomous consumption would have the same effect on the expenditures schedule as a(n)
a. decrease in investment. b. increase in government purchases. c. increase in net exports. d. decrease in taxes