The assumption that individuals act rationally implies that
a. people think only of themselves and disregard the well-being of others
b. people undertake all those activities that yield benefits to themselves
c. people only consider the costs of an activity to decide whether it is worthwhile
d. the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that deed
e. people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile
E
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An individual labor-demand curve represents:
A. a worker's decisions around how many hours to work at each alternative wage. B. the decisions of all workers around how many hours to work at each alternative wage. C. a firm's decisions around how many hours to hire at each alternative wage. D. the decisions of all firms around how many hours to work at each alternative wage.
Resources are used to create goods and services.
Answer the following statement true (T) or false (F)
Which of the following statements is correct?
a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money.
b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.
c. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past.
d. Expectations about the business cycle have no impact on stock prices.
In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in January, holding everything else constant?
A) The demand curve shifts to the right. B) The quantity demanded decreases. C) The demand curve shifts to the left. D) The quantity demanded increases.