According to the adaptive rationality standard, individuals:
A. are irrational if they choose to have preferences that are not self-interested.
B. might rationally choose to have preferences that are not self-interested.
C. always behave according to their own narrow self-interest.
D. are unable to choose what kind of preferences to have.
Answer: B
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Third-degree price discrimination occurs when a monopoly
a. separates its customers into distinct markets, charging a different price to each group. b. charges different prices for the same good sold to the same customer. c. requires the consumer to pay a separate fee simply for the right to purchase the good. d. charges each customer the maximum that he is willing to pay for each item purchased.
Negative economic growth in the long-run can be illustrated in Figure 17.1 by
A. Movement from point D to point C. B. An outward shift of the production possibilities curve. C. An inward shift of the production possibilities curve. D. Movement from point B to point D.
Why are too few resources devoted to the creation of knowledge?
a) Profit-seeking firms tend to free-ride on the knowledge that others have developed. b) Profit-seeking firms undervalue knowledge in their pursuit of revenues. c) Profit-seeking firms tend to rely on existing employee knowledge. d) Profit-seeking firms abuse their patents.
The seller side of the market is known as the:
A. supply side. B. income side. C. demand side. D. seller side.