One major assumption of economics is that people
A. always pursue the interests of others.
B. behave randomly without any predictable pattern.
C. act as if they systematically pursue self-interest.
D. are sometimes rational and sometimes irrational.
Answer: C
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The uses-of-saving identity shows that if the government budget deficit rises, then one of the following must happen
A) Private saving must rise, investment must fall, and/or the current account must fall. B) Private saving must rise, investment must fall, and/or the current account must rise. C) Private saving must rise, investment must rise, and/or the current account must fall. D) Private saving must fall, investment must rise, and/or the current account must rise.
Did President Obama’s $787 billion fiscal stimulus package of early 2009 work? Name several facts in support of the proposition that it did. Also, list the arguments of the skeptics.
What will be an ideal response?
Economists generally assume that
a. firms act to maximize the dividends paid to stockholders b. households act to maximize their wealth c. households act to maximize utility d. firms act to maximize revenue e. both households and firms act to minimize expenditures
Exploiting substantial scale economies is an explanation of why some industries come to be categorized as monopolistically competitive.
Answer the following statement true (T) or false (F)