What is a baseline assumption that economists make about consumer behavior?
A) People are rational utility maximizers.
B) People will always choose short-term benefits to longer-term payoffs.
C) People will always choose what makes them happiest.
D) People are unpredictable.
Correct Answer:
Verified
Q5: What is a bundle in terms of
Q6: Mariana has an hour of free time
Q7: Corey has a blue sweater and a
Q8: Utility is:
A)a way of describing a consumer's
Q9: A utility function is an equation for
Q11: Utility is:
A)maximized by rational individuals.
B)revealed by observing
Q12: Utility is:
A)a quantitative measure of consumers' preferences.
B)an
Q13: Nikolaj makes a New Year's resolution to
Q14: Individuals will make choices to maximize their:
A)constraints.
B)utility.
C)income.
D)values.
Q15: Economists assume that an individual chooses the
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