If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to
A) see whether it generates accurate predictions about the choices of business people.
B) ask business people whether it is true or not.
C) find out whether U.S. businesses are more profitable than European businesses.
D) take a survey of people and see if they agree with this assumption.
A
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The cost of a one-unit increase in an activity is called the
A) rational cost. B) opportunity benefit. C) marginal cost. D) marginal benefit. E) margin.
When calculating GDP, purchases of used goods are
A) included at the original price. B) included by taking the original price and subtracting the (current) used price. C) included at the (current) used price. D) not included. E) included at the original price minus any depreciation.
Jessica receives a raise at her current part-time job from $9 to $11 per hour. If her labor supply curve is backward sloping, she will work fewer hours after receiving the pay raise
a. True b. False Indicate whether the statement is true or false
The total value added of the economy equals:
(a) Total profits; (b) Total wages; (c) Total value of all final transactions in the economy; (d) None of the above