John has a math test tomorrow. He has decided to go to the gym today and then study math for several hours. Which of the following statements is TRUE?
A) John did not use the economic way of thinking because his decision on how to allocate his time did not involve money.
B) John's decision on how to allocate his time is inconsistent with the rationality assumption since he has decided to go to the gym.
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
D) John's decision does not involve his pursuit of self-interest.
Answer: C
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Demand curves are downward sloping, reflecting the fact that people will buy
a. less as the price decreases b. more as the price increases c. the same quantity regardless of price d. more as the price decreases e. less as incomes decrease
Which of the following would be officially classified as unemployed?
a. a school administrator who has been working as a substitute teacher one day per week while looking for a full-time job in administration b. a mathematician who returned to graduate school after failing to find a job the last four months c. a 60-year-old former steel worker who would like to work but has given up actively seeking employment d. a laid-off construction worker waiting to return to a previous job