Which statement best summarizes the perspective from which economic theory explains social occurrences? Economic theory assumes
A) gains and losses will eventually cancel out.
B) individuals make choices consistent with their goals.
C) the law of averages holds in the long run.
D) the value of anything is equal to its price.
E) whatever people want is what they ought to be able to buy.
B
You might also like to view...
Which of the following will shift the supply curve for USB flash drives to the right?
A. an increase in the number of sellers B. an increase in consumers' incomes C. an increase in the cost of resources used to manufacture USB flash drives D. an increase in the number of buyers
The long-run upward-sloping aggregate demand curve implies an upward-sloping Phillips curve; thus, there is a tradeoff between inflation and unemployment in the short run when it comes to government policy.
Select whether the statement is true or false. A. True B. False
Implicit collusion occurs when oligopolistic firms negotiate a common price.
Answer the following statement true (T) or false (F)
Exhibit 6-12 Cost schedule for producing pizza Pizzas FixedCost VariableCost TotalCost 0 $ $ $ 1 48 2 17 3 27 4 78 5 40 6 64 7 80 In Exhibit 6-12, the marginal cost of producing the 3rd pizza
A. is higher than the average total cost of 3 pizzas, so the average total cost curve is increasing at a quantity of 3 pizzas. B. is lower than the average total cost of 3 pizzas, so the average total cost curve is decreasing at a quantity of 3 pizzas. C. is equal to the average total cost of 3 pizzas, so the average total cost curve is minimized at a quantity of 3 pizzas. D. is higher than the average fixed cost of 3 pizzas, so the average fixed cost curve is increasing at a quantity of 3 pizzas.