Economists assume that people are motivated by
A. altruism.
B. greed.
C. rational self-interest.
D. benevolence.
Answer: C
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Which of the following is NOT a likely impact on the bond market if corporations become convinced that a robust economic recovery is underway?
A) increased demand for bonds B) increased supply of bonds C) lower bond prices D) higher interest rates
Raising the discount rate is: a. an expansionary policy because it raises the ratio of excess to total reserves in the banking system
b. a contractionary policy on the part of the member banks of the Fed because it raises the firms' costs of borrowing from them. c. a contractionary policy on the part of the Fed because it raises the commercial banks' cost of borrowing from it. d. an expansionary policy on the part of the member banks of the Fed because it raises their profits relative to those of the nonmember banks. e. an expansionary policy on the part of the Fed because increasing the interest rates that the banks are allowed to charge will increase their willingness to make loans.
Producers' political power and strong stake in the regulatory outcome lead them, in effect, to control the regulating agency and prevail on it to serve producer interests is called the:
a. capture theory of regulation b. tying contract c. exclusive dealing d. interlocking directorate
With constant returns to scale and factor prices invariant with the amount of factors used, the long-run output expansion path is
A. zero. B. a straight line. C. horizontal. D. U-shaped.