Economic reasoning implies that economic agents will make decisions:
A) by random selection.
B) by comparing the costs and benefits of various options.
C) solely on the basis of tastes and preferences for various options.
D) by replicating the choices made by other economic agents.
Question 2
The sum of all planned expenditures for the entire economy at each possible price level is
A) aggregate demand. B) effective demand.
C) aggregate supply. D) actual expenditures by consumers.
