According to behaviorial economists, traditional economic models assume all the following characteristics EXCEPT
A. unbounded resources.
B. unbounded rationality.
C. unbounded selfishness.
D. unbounded willpower.
Answer: A
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Macroeconomics seeks to understand
A) product demand, product cost, and profit maximization. B) industry sales, marketing strategies, and corporate growth. C) public choices, private choices, and consumer maximization. D) economic growth, business cycles, and inflation.
Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the amount of money John should save would be:
A. $10,000. B. $40,000. C. $12,000. D. $8,000.
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
A main trading partner with the U.S. is:
A. Hungary. B. Canada. C. Russia. D. Italy.