In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities for gain is known as
A) rational self-interest.
B) altruism.
C) sufficiency.
D) empiricism.
Answer: A) rational self-interest.
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Which of the following is an example of a product that is excludable and nonrival?
A) a motorcycle B) the court system C) Western lowland gorillas D) a NASCAR event
The marginal expenditure curve for labor is based on the assumption that
A) the most productive workers are hired first. B) the wage rate is independent of the quantity of labor employed. C) the market supply curve for labor is infinitely elastic. D) all workers are paid the same wage rate. E) none of the above
The expenditure multiplier explains how a change in
A. real GDP leads to a change in induced expenditure. B. induced expenditure leads to a change in real GDP. C. real GDP leads to a change in autonomous expenditure. D. autonomous expenditure leads to a change in real GDP. E. induced expenditure leads to a change in autonomous expenditure.
If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. M2 money supply to remain the same. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to fall.