Because neoclassical economists assume that people are rational decision makers, they:
A. are able to make better predictions about economic behaviors and outcomes.
B. ignore the mental processes by which these decisions are made.
C. believe that people never make suboptimal decisions.
D. believe it is best to limit the number of options people have available.
Answer: B
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In economics, the short run is the time frame in which the quantities of ________ and the long run is the period of time in which ________
A) some factors of production are variable; the quantities of all factors of production are fixed B) all factors of production are variable but technology is fixed; technology is variable C) all factors of production are fixed; the quantities of all factors of production can be varied D) some factors of production are fixed; the quantities of all factors of production can be varied
Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this?
a. They anticipate that low rents will cause low-income people to move into the city, reducing the quality of life for other people. b. They anticipate that rent control will benefit landlords at the expense of tenants, increasing inequality in the city. c. They anticipate that rent controls will cause a construction boom, which will make the city crowded and more polluted. d. They anticipate that rent control will eliminate the incentive to maintain buildings, leading to a deterioration of the city.
Which of the following does not involve exports and imports?
A. Current account. B. Capital account. C. Balance of trade. D. Net exports.