Author Question: When studying individuals' economic behavior, economists assume that A) individuals understand ... (Read 120 times)

pepyto · **on:** Jun 29, 2018

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) only educated people act as if they were rational.
D) self-interest is of limited relevance in predicting an individual's actions.

Question 2

The decrease in the price of gasoline to a national average of less than 3.20 during the summer of 2012 was most likely a result of

A) an increase in demand due to reduced summer driving.
B) an increase in supply resulting from higher refinery output.
C) an increase in demand due to increase in summer driving along with a decrease in supply resulting from reduced refinery output.
D) an increase in supply resulting from higher refinery output along with a decrease in demand in summer driving.