People behave rationally when they
A) follow the advice of government leaders.
B) never have regrets about their decisions.
C) make decisions they think will make themselves better off.
D) make decisions with a focus only on financial outcomes.
Answer: C
You might also like to view...
The liquidity-money (LM) curve shows the alternative combinations of interest rates and real income that clears the money market
Indicate whether the statement is true or false
If the aggregate demand curve shifts in the short run moving the economy out of long-run equilibrium:
A. the short-run aggregate supply curve will shift to bring it back into long-run equilibrium. B. the aggregate demand curve will eventually shift back once expectations are taken into account. C. inflation will always occur. D. we will move along the short-run aggregate supply curve back to equilibrium.
The tendency of the prices of identical baskets of goods across countries to converge: a. Is weaker to the extent the countries compared have substantial tariffs on imported goods. b. Is weaker to the extent the countries compared have limiting quotas on imported goods. c. Is weaker for goods and services not traded internationally
d. All of the above are true.
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. Which good(s) became relatively more expensive for buyers?
A. All three goods became relatively more expensive. B. None of the goods became relatively more expensive. C. Only amusement park tickets became relatively more expensive. D. It depends on the overall rate of inflation in the economy.