The assumption of rational behavior:
A. offers a perfect framework for how people actually behave.
B. helps economists explain about how people behave in a way that will best achieve their goals.
C. explains why people voluntarily engage in decisions for which costs exceed benefits.
D. is best applied to psychology and should not be used in the science of economics.
B. helps economists explain about how people behave in a way that will best achieve their goals.
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Some people support the Euro in hopes that the European Central Bank will emulate the monetary policy of the central bank of
A) Germany. B) France. C) Italy. D) Spain.
Many fast-food restaurants have begun offering value meals with fruit or salad instead of French fries. If consumers find this idea attractive, the market demand for potatoes will most likely:
A. increase, which may result in short-run losses for potato growers. B. decrease but have no effect on the profits earned by potato growers in the short run. C. increase but have no effect on the profits earned by potato growers in the short run. D. decrease, which may result in short-run losses for potato growers.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
To motivate the employees of a company to change and follow a new mission, it is important to:
A. move overseas for most of the production. B. change the company's organizational architecture. C. rely on standard U-form organizational structures. D. outsource marketing and advertising.