A traditional economist probably would not want to give up the assumption of consumer sovereignty because it:
A. opens up a Pandora's box of problems and complexity.
B. would violate Hume's dictum.
C. would violate the Schroeder principle.
D. is an empirically verifiable assumption.
Answer: A
You might also like to view...
An increase in frictional unemployment will
A) shift the long-run Phillips curve to the right. B) shift the short-run Phillips curve to the right. C) increase the natural rate of unemployment. D) All of the above are correct. E) None of the above is correct.
In the short run, the incidence of a sales tax is
a. wholly absorbed by the producer. b. shared between the consumer and the producer. c. deferred until the market is able to re-establish an equilibrium price. d. wholly absorbed by the consumer.
Which of the following is true about entrepreneurs?
a. They have the talent required to dream up a new product or find a better way to produce an existing one. b. They are rewarded by profits. c. They sometimes suffer losses. d. They benefit from what's left over after paying other resource suppliers. e. All of the answers are correct.
Ongoing inflation has its own momentum because
a. prices rise whenever firms see other prices rising b. the public learns to expect inflation and adjusts its decisions in response c. public officials are unwilling to stop prosperity d. more and more people now have jobs e. we are always playing catch up, trying to get what we lost when others raise prices