Economics is best defined as the
A) study of how people make choices to satisfy their wants.
B) study of individual self-interests.
C) study of why people do not react to incentives.
D) process by which goods are sold in free markets.
Answer: A
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Saving remaining constant, the average propensity to save declines with an increase in disposable income
a. True b. False Indicate whether the statement is true or false
Agricultural price supports are
A) price ceilings. B) price floors. C) quantity quotas. D) taxes.
Which of the following market structures is characterized by a single firm and huge barriers to entry?
a. Monopolistic competition b. Oligopoly c. Monopoly d. Monopsony e. Perfect competition
Macro equilibrium is established at which price level, given AD1 and AS1 in Figure 8.3?
A. P1. B. P2. C. P3. D. P4.