The assumption that individuals do NOT intentionally make decisions that would leave them worse off is referred to as

A. the law of comparative advantage.
B. the rationality assumption.
C. a ceteris paribus assumption.
D. the premium assumption.


Answer: B

Economics

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When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in: a. quality-adjusted pricing. b. price discrimination

c. price differentiation. d. illegal activities.

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Vertical equity states that taxpayers with a greater ability to pay taxes should

a. contribute a decreasing proportion of each increment in income to taxes. b. contribute a larger amount than those with a lesser ability to pay. c. be less subject to administrative burdens of a tax. d. be less subject to tax distortions that lead to deadweight losses.

Economics

Which of the following is NOT a major foreign exchange center?

a. London b. New York c. Tokyo d. Chicago

Economics

Factories and machines are examples of:

A. value-added goods. B. non-market goods. C. consumption goods. D. capital goods.

Economics