Multiple Choice
"Assume that all individuals have perfect information about prices now and in the future, that they have identical tastes, that all markets are competitive, and that there is no government." This statement is an example of how economists
A) apply the law of supply and demand.
B) employ marginal analysis.
C) are prevented from getting correct answers.
D) ignore reality.
E) use unrealistic assumptions to develop theory.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: A line that rises from left to
Q32: It has been found that people die
Q33: Both parties gain in a voluntary exchange.
Q34: In the twentieth century, Russian peasants noticed
Q35: If Japan is twice as good at
Q37: There is an inverse relationship between inflation
Q38: If Taiwanese workers can produce all goods
Q39: In 1971, a bank worker could process
Q40: Economists probably agree more often than they
Q41: A diagram is a good example of