Economists make the general assumption that:
A. people are rational, but their behavior doesn't always follow this assumption.
B. people are irrational, but there are some correlations in behavior that have been proven.
C. people are rational, but this doesn't really ever resemble reality.
D. people are irrational, but this is too difficult to put into a model.
A. people are rational, but their behavior doesn't always follow this assumption.
You might also like to view...
Average cost is higher with a monopolistically competitive firm than with a perfectly competitive firm
a. True b. False Indicate whether the statement is true or false
Which of the following will discourage investment?
What will be an ideal response?
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in
A. the supply of this wine. B. the demand for this wine. C. the quantity of this wine demanded. D. the quantity of this wine supplied.
What happens when wages are set by law above the equilibrium level?
a. Firms employ fewer workers than they would at the equilibrium wage. b. Firms employ more workers than they would at the equilibrium wage. c. Firms tend to try to break the law and hire people at the equilibrium level. d. Firms hire more workers but for fewer hours than they would at the equilibrium wage.