Which of the following statements about the idea that people are rational is? correct?
A. The idea assumes that consumers and firms use all available information as they act to achieve their goals.
B. The idea assumes that consumers and firms take into account the costs of their actions but ignore the benefits.
C. The idea assumes that consumers and firms take into account the benefits of their actions but ignore the costs.
D. The idea assumes that consumers and firms always make correct decisions.
Ans: A. The idea assumes that consumers and firms use all available information as they act to achieve their goals.
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Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
Which graph in Figure 5-3 best represents the economic conditions of the American economy in 2001?
A. 1 B. 2 C. 3 D. 4
Which of the following mergers would result from the purchase of a retail clothing chain by a computer software company?
a. A horizontal merger. b. A vertical merger. c. A conglomerate merger. d. A monopoly merger.
From 1990 to 2004, developed countries that experienced larger increases in Real GDP tended also to experience higher rates of
A. population growth. B. unemployment. C. deflation. D. productivity growth.
The economic basis for trade is based on absolute advantage.
Answer the following statement true (T) or false (F)