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Q Macroeconomics Ch 6 TD, ZO G search Textbook Solutions Che x X 1 + tlercc.edu/

ID: 1138949 • Letter: Q

Question

Q Macroeconomics Ch 6 TD, ZO G search Textbook Solutions Che x X 1 + tlercc.edu/courses/1466452/quizzes/2391620/take/questions/49197046 Prin of MicroEcon (Face-to-face) > Quizzes > Micro Unit Test 1 Micro Unit Test 1 Started: Sep 21 at 4:25pm Quiz Instructions Test 1 consists of 50 questions from Chaps 1. 2. 3.4, and 9. Question 2 Economists assume that rational behavior is useful in explaining choices people make because irrational people do not make economic choices. even though people may not behave rationally all the time. 0 because individuals act rationally all the time in ali circumstances even though people rarely, if ever, behave in a rational manner. Next. Previous

Explanation / Answer

2) The correct answer is :- Even though people may not behave rationally all the time

Explanation : - When economists assume rational behaviour they are not saying that people do not make mistakes. What economists assume is that people pursue their utility and make appropriate decisions based on the informatiom they have at the time or choose to obtain.

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44) The correct answer is :- No, the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit

Explanation : - Equilibrium represents a situation of economic efficiency because it maximizes benefits to buyers and sellers in the market if there are no externalities. When production is cut, buyers have to pay more for the goods and services which earlier cost less and as a result the marginal cost exceeds the marginal benefit.