Economic analysis assumes that
A) individuals act only out of selfish motives.
B) people are basically altruistic, and their actions are, therefore, impossible to predict.
C) changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior.
D) although individuals are at times selfish and at times altruistic, only their selfish actions may be predicted.
C) changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior.
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Which of the following statements most accurately describes the relationship between the nominal and real interest rates?
a. The real interest rate is the expected inflation rate plus the nominal interest rate. b. The real interest rate is the expected inflation rate minus the nominal interest rate. c. The real interest rate is the nominal interest rate minus the expected inflation rate. d. The real interest rate is the nominal interest rate multiplied by the expected inflation rate. e. None of the above statements is accurate.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
Whenever a firm can charge a price greater than marginal cost
A) the firm must be a monopolist. B) there is some loss of economic efficiency. C) consumers have the ability to choose a close substitute. D) the firm will earn economic profits.
Brand loyalty
A. Leads to one price for all brands. B. Exists even when products are virtually identical. C. Makes the demand curve facing the firm more price-elastic. D. Is possible only when there are a few firms in the market.