All of the following are assumptions of both market and public-sector decision making EXCEPT
A) Decisions are based on majority rule.
B) Decisions are motivated by individuals' self-interest.
C) Opportunity costs exist in decisions.
D) Choices reflect incentives faced by decision makers.
Answer: A
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According to the HO model, countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
Indicate whether the statement is true or false
A swap that involves the exchange of a set of payments in one currency for a set of payments in another currency is
A) an interest-rate swap. B) a currency swap. C) a swaption. D) an international swap.
Every trading day, a total of roughly a ______ dollars in currency trades hands in the foreign exchange markets.
a. thousand b. million c. billion d. trillion
According to David Ricardo's explanation of land rent, what happens when the demand for land increases?
A) The supply curve shifts to the right just enough to keep the price per acre constant. B) Revenues to owners of land increase but economic rent declines. C) The amount of economic rent stays constant, constrained by a perfectly inelastic supply curve. D) Both revenues to owners of land and economic rent increase.