All of the following are assumptions of both market and public-sector decision making EXCEPT
A. Decisions are motivated by individuals' self-interest.
B. Opportunity costs exist in decisions.
C. Decisions are based on majority rule.
D. Choices reflect incentives faced by decision makers.
Answer: C
You might also like to view...
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. A decrease in supply and an increase in demand are represented by a movement from
A) point d to point c. B) point b to point d. C) point c to point b. D) point c to point a.
At long-run macroeconomic equilibrium, ________
A) an inflationary gap exists B) real GDP equals potential GDP C) a recessionary gap exists D) real GDP is less than potential GDP but is as close as it is possible to be
Which of the following is a microeconomics question?
A. Why do some countries grow faster than others? B. Is it sensible for a government to subsidize tobacco production? C. Should Congress and the president take action to reduce global warming? D. Should the government attempt to influence the interest rate to lower inflation?
If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then the income elasticity of demand for housing is
A. -1. B. -0.7. C. 0.7. D. 1.43.