Which of the following statements is true?
A) A rational consumer makes his decisions depending on what the majority chooses.
B) A trade-off refers to the exchange of goods between economic agents through a barter system or mutual exchange.
C) A budget constraint is an economic tool that quantifies the trade-off between consumption of two goods.
D) All rational economic agents attempt to maximize their income.
C
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If the rate of exchange for a pound is $4, the rate of exchange for the dollar is ________.
A. $0.25 B. 4 pounds C. 1/4 pound D. $1.00
The result of the balanced budget multiplier is that aggregate demand changes by the amount of the change in:
a. government spending. b. tax revenue. c. government spending plus tax revenue. d. government spending minus tax revenue.
Which of the following statements is TRUE about the price that a monopolist charges?
A. The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs. B. Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set. C. The price is the same as the price that would be charged if there was perfect competition. D. The value that society places on the last unit produced in a monopoly is greater than its cost.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. Diminishing returns to labor set in with the ________ worker.
A. first B. second C. third D. fourth