Which of the following statements is true?
A) Rational economic agents maximize more than just monetary income.
B) An individual does not require information to make optimal decisions.
C) The principle of optimization is only accurate when it comes to making monetary decisions.
D) It is not necessary to consider the risks of a particular alternative while making an optimal decision.
A
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In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C
A) changes in inventories cannot be determined. B) unused industrial capacity exists in the economy. C) unplanned inventories increase. D) unplanned inventories decrease.
A surplus of peanuts implies
A) more peanuts have been produced than can be used currently. B) peanuts are not currently scarce. C) there is currently no demand for peanuts. D) all of the above. E) none of the above.
What are the characteristics of those who migrate to urban areas? What positive and negative effects does their leaving have on those who remain?
What will be an ideal response?
Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve on the downward sloping section, decreasing the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.