The assumption that individuals will not intentionally make ...

[dakota nelson]

The assumption that individuals will not intentionally make decisions that will leave them worse off is known as
 
  A) microeconomic analysis.
  B) macroeconomic analysis.
  C) a model or theory.
  D) the rationality assumption.

Question 2

Mr. Smith earns 100,000 per year. Each year he spends 50,000 and saves 50,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is
 
  A) 0 percent.
  B) 2.5 percent.
  C) 3.5 percent.
  D) 5.0 percent.

[jackie]

Answer to Question 1

D

Answer to Question 2

B