According to economic theory, how do people make decisions?
A) They make decisions in the same manner as their parents did.
B) They make decisions by looking at what others have done in the same situation and then doing the opposite.
C) They make decisions by looking at what others have done in the same situation and then doing the same.
D) They make decisions based on their own self-interest.
D
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Which of the following most resembles a case of taste-based discrimination?
A) Katelyn prefers not to hire women under the age of 35 because she is afraid they will eventually want to take maternity leave. B) Rodrigo will only hire bilingual people because a majority of his customers speak either English or Spanish. C) Tatiana only hires men as bartenders and women as cocktail servers at her upscale bar. D) Austin has a deep-seeded hatred of bald-headed men and refuses to hire any to work at his car wash.
Compared to those with higher incomes, low-income families are more likely to
a. be headed by a person between 35 and 55 years of age. b. have both a husband and a wife in the labor force. c. be single-parent families. d. be headed by a college graduate.
Which of the following is characteristic of a perfectly competitive market?
A. Exit of small firms when profits are high for large firms. B. Marginal revenue lower than price for each firm. C. Zero economic profit in the long run. D. A small number of firms.
Use the following graph to answer the next question.
If aggregate supply shifts from AS1 to AS2, then the price level will ________.
A. decrease and real domestic output will increase B. decrease and real domestic output will decrease C. increase and real domestic output will increase D. increase and real domestic output will decrease