When studying individuals' economic behavior, economists assume that
A. individuals understand the rationale for all their actions.
B. individuals act as if they were rational.
C. self-interest is of limited relevance in predicting an individual's actions.
D. only educated people act as if they were rational.
Answer: B
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According to this Application, after the financial crisis of 2008, Treasury Secretary Timothy Geithner and his staff made a proposal that major banks and financial institutions be subjected to
A) regulation by Congress. B) yearly audits. C) stress tests. D) none of the above.
In an oligopoly, there are
A) many firms and barriers to entry. B) many firms and no barriers to entry. C) few firms and barriers to entry. D) few firms and no barriers to entry. E) barriers to entry and only one firm.
Refer to the scenario above. Which of the following statements is true about the model?
A) The model is not based on any assumption. B) The predictions of the model will hold for every individual. C) The model describes the economic payoff of more education. D) The model can be applied for maximum 10 years of additional education.
More economists adopted monetarism in the early 1990s
a. True b. False Indicate whether the statement is true or false