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 145 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
YES! Correct, THANKS for helping me on my review

peter

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Mechanisms to Explain the Effects of Massage Mechanisms to Explain the Effects of Massage
How to combine two or more polynomial fractions into a single rational expression How to combine two or more polynomial fractions into a single rational expression
Please fully explain in detail Please fully explain in detail
economic question economic question
economic question (having trouble) economic question (having trouble)
Survivorship curves for people in the United States in the early 20th and early 21st centuries Survivorship curves for people in the United States in the early 20th and early 21st centuries
Video: Flexor reflex & Crossed extensor reflex

For a complete list of videos, visit our video library