When economists say an individual has made a rational choice, they mean the individual has
a. made the choice by weighing their own subjective costs and benefits.
b. made a "good" decision, one that reasonable outside observers would have also made.
c. neglected to consider the unintended consequences arising from their decision.
d. ignored their own personal interests and made the choice that is best for society.
A
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If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 4.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $200 B) $500 C) $600 D) $800
The primary concern of the 1964 tax reform was _____
a. fiscal stabilization b. macroeconomic policy c. equity considerations d. efficiency considerations
A currency union is:
A) a trade agreement between countries. B) a customs union between countries. C) when countries abandon their domestic currency and adopt a common currency. D) a free trade area.
Explain and show graphically how an increase in incomes in the United States will affect equilibrium in the foreign exchange market?
What will be an ideal response?