The economist assumes that people act in accordance with the equimarginal principle, because the economist assumes that people are
a. altruistic.
b. selfish.
c. rational.
d. price takers.
c. rational.
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All else equal, when oil prices increase, oil exploration processes like horizontal drilling become more advantageous for oil companies, and this will ________ proven reserves of oil and ________ the number of years it will take to deplete the stock
of oil. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Refer to Scenario 7.3. When Q = 200, what is the marginal cost?
A) 0 B) 5 C) 10 D) 15 E) 25
Which of the following schools of thought criticized the Fed's policy of targeting interest rates?
a. The new Keynesians b. The Keynesians c. The monetarists d. The classical economists e. The new classical economists
Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has
a. reduced measured GDP. b. not affected measured GDP. c. increased measured GDP only to the extent that the value of the restaurant meals exceeded the value of meals previously cooked at home. d. increased measured GDP by the full value of the restaurant meals.