The theory of consumer choice
a. underlies the concept of the demand for a particular good.
b. underlies the concept of the supply of a particular good.
c. ignores, for the sake of simplicity, the trade-offs that consumers face.
d. can be applied to many questions about household decisions, but it cannot be applied to questions concerning wages and labor supply.
a
You might also like to view...
Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will happen if, before Apricot chooses, Macrosoft announces that it is going to develop a touch-screen t-shirt no matter what Apricot does?
A. Apricot will develop a touch-screen t-shirt, and Macrosoft will not because Macrosoft's threat is not credible. B. Both Apricot and Macrosoft will develop a touch-screen t-shirt because neither company will want to back down. C. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt because they will both realize that they are in a no-win situation. D. Macrosoft will develop a touch-screen t-shirt, and Apricot will not because it's not in Apricot's interest to develop a touch-screen t-shirt if Macrosoft also develops one.
In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________
A) of 17 percent; 33 percent B) of less than 10 percent; over 40 percent C) of 100 percent; 20 percent D) above 50 percent; less than 1.5 percent
The seller of an option has the ________ to buy or sell the underlying asset while the purchaser of an option has the ________ to buy or sell the asset
A) obligation; right B) right; obligation C) obligation; obligation D) right; right
Which piece of legislation committed the government to pursuing unemployment policies that are consistent with maintaining price stability?
a. The Effective Pricing Act of 1971 b. The Employment Initiative Act of 1998 c. The Employment Act of 1946 d. The Stable Growth Act of 1960