?Economic actors in a competitive world think strategically in order to maintain profit.
Answer the following statement true (T) or false (F)
False
Rationale: Economic actors in a competitive world take all prices as given, and don't think strategically. It is from the combination of all of the individual optimizing decisions that equilibrium and the economic environment springs.
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If the world terms of trade equal those of country F, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
The price elasticity of demand for business air travel is .80 and the price elasticity of demand for leisure air travel is 1.60. Therefore, the demand for leisure air travel
A. is less elastic than the demand for business travel. B. is inelastic. C. is more elastic than the demand for business travel. D. is unrelated to consumers' incomes.
Which of the following is not a common mistake made by consumers?
A) the failure to ignore sunk costs B) being overly pessimistic about their future behavior C) the failure to take into account the implicit costs of an activity D) being overly optimistic about their future behavior
The narrowest money measure is
A) currency plus non-interest bearing checking accounts. B) currency plus all checking accounts. C) currency plus all deposits at financial institutions. D) definitive money.