Which of the following is an assumption that economists make?
A. Most people possess entrepreneurial talent.
B. People are very good at assessing the costs of decisions accurately.
C. Individuals and firms will act to provide the things people want.
D. Individuals usually fail to optimize the use of their resources because they think on the margin.
C. Individuals and firms will act to provide the things people want.
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In one year, a firm increases its production by $9 million and increases sales by $8 million. All other things in the economy remaining the same, which of the following is true?
A) GDP increases by $8 million and inventory investment decreases by $1 million. B) GDP increases by $9 million and inventory investment increases by $1 million. C) Inventory investment decreases by $1 million. D) GDP increases by $8 million and investment increases by $1 million. E) GDP increases by $17 million.
Refer to Scenario 1. What is the total sum of squares?
A) 3860.8 B) 3718.9 C) 141.9 D) None of the above.
The production possibilities curve bows out because
A) production is efficient. B) of the law of increasing additional cost. C) production is inefficient. D) resources are not being fully utilized.
The period 1992-200 was marked by
a. erratic changes in real GDP b. abnormally high levels of unemployment c. abnormally high levels of inflation d. sustained economic growth e. extended phase of recession