Economists assume that individuals
A) prefer to live in a society that values fairness above all else.
B) will never take actions to help others.
C) are rational and respond to incentives.
D) behave in unpredictable ways.
C
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If the demand for a good is perfectly elastic, the price elasticity of demand is ________ and the demand curve is ________
A) infinite; vertical B) zero; vertical C) zero; horizontal D) infinite; horizontal
How does central bank independence cause lower inflation?
What will be an ideal response?
National Income (NI) is calculated by adjusting GDP for
Which of the following is a normative statement?
A) The Gross Domestic Product is the dollar value of all goods and services produced in a country in a year. B) Fiscal policy is determined by the Congress and the president. C) Tax cuts ought to be enacted for the good of the economy. D) Monetary policy is determined by the Federal Reserve System.