The rationality assumption says that
A. all economic analysis must be normative.
B. people never make decisions that would leave them worse off.
C. people do not intentionally make decisions that would leave them worse off.
D. people do not respond to incentives since incentives require scarce resources.
Answer: C
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Use the following graph showing the domestic demand and supply curves for a specific product in a hypothetical nation called Marketopia to answer the next question.
At what price will Marketopia be neither importing nor exporting the product?
A. $2.50 B. $1.00 C. $1.50 D. $2.00
Perfectly competitive markets are characterized by:
a. a small number of very large producers. b. very strong barriers to entry and exit. c. firms selling a homogeneous product. d. all of these.
A bank can only loan out its excess reserves
Indicate whether the statement is true or false
Increased global competition is one reason why unionization has become more popular.
Answer the following statement true (T) or false (F)