The assumption that people do not intentionally make decisions that would leave them worse off is known as
A) the rationality assumption.
B) the microeconomic assumption.
C) the ceteris paribus assumption.
D) the normative assumption.
A
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The process by which economists test hypotheses against facts to develop theories, principles, and models is called
A. the economic perspective. B. the scientific method. C. policy economics. D. microeconomics.
The U.S. Postal Service expenditures are off-budget
a. True b. False
If Spain sells soccer balls to the United States, then Spain:
A. has an absolute advantage over the United States in making soccer balls. B. can produce more soccer balls than the United States given the same resources. C. has the ability to produce soccer balls at a lower opportunity cost than the United States can. D. does not have any trade barriers with the US.
Answer the following statement(s) true (T) or false (F)
1. Step 2 of the three-step method for monopolistic competition involves finding total cost. 2. If total revenue is greater than total costs at q*, the firm is generating total economic profits. 3. When there are economic losses, firms often enter the market. 4. If many firms producing similar products enter the market, the demand curve for existing firms producing this type of product will become less elastic. 5. If many sellers producing similar products leave the market, the demand curve for existing firms producing this type of product will shift to the right.