The principle of voluntary exchange is based on the idea of
A) making assumptions. B) rational self-interest.
C) thinking at the margin. D) isolating variables.
B
You might also like to view...
There are a few ship manufacturers in Polonia and each firm faces a downward sloping demand curve. The ship-building industry in Polonia is an example of a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
The above figure shows the market for steel ingots. If the market is competitive, then
A) the socially optimal quantity of steel is zero. B) the socially optimal quantity of steel of 50 units is produced. C) the socially optimal quantity of steel of 100 units is produced. D) more than the socially optimal quantity of 50 units of steel is produced.
Historically, the most important tool of monetary policy is:
A. the discount rate. B. market interest rates. C. reserve requirement ratios. D. open-market operations.
As new firms enter a monopolistically competitive industry where profits are being made
A. the demand curve facing each firm decreases, thereby reducing prices and profits. B. the market demand curve for the product decreases, thereby reducing prices and profits. C. the demand curve facing each firm increases, thereby increasing prices and profits. D. the market demand curve for the product increases, thereby increasing prices and profits.