This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the economic assumption that people are rational. What will be an ideal ... (Read 122 times)

magmichele12

  • Hero Member
  • *****
  • Posts: 559
on: Jun 29, 2018
Explain the economic assumption that people are rational.
 
  What will be an ideal response?

Question 2

Refer to Figure 5-5. If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does D2 represent?
 
  A) the demand curve reflecting the sum of social and external benefits
  B) the demand curve reflecting social benefits
  C) the demand curve reflecting private benefits
  D) the demand curve reflecting external benefits


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dreamfighter72

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 29, 2018
Answer to Question 1

People are rational means that economists assume consumers and firms will use all available information as they act to achieve their goals. Rational individuals weigh the benefits and costs of each action, and they choose an action only if the benefits exceed the costs.

Answer to Question 2

B


magmichele12

  • Member
  • Posts: 559
Reply 2 on: Jun 29, 2018
:D TYSM

shailee

  • Member
  • Posts: 392
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Values, both those held by individuals and those that represent a nation or people, can undergo deep ... Values, both those held by individuals and those that represent a nation or people, can undergo deep ...
Economic Differentiation in China Economic Differentiation in China
American people aren't the only ones getting bigger—American pets are also putting on pounds American people aren't the only ones getting bigger—American pets are also putting on pounds
economic question economic question
economic question economic question
Collage of people showing emotions Collage of people showing emotions
Video: Olfaction. or the sense of smell

For a complete list of videos, visit our video library