In the utility maximizing model, consumer preferences are assumed to be transitive. What does this mean?
A) that consumers have the freedom to change their preferences from time to time
B) that consumers prefer more of a good to less
C) that consumers go through cycles in their consumption behavior
D) that consumers have preferences that are relatively consistent in the time period under consideration
D
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________ policies involve government support for manufacturing sectors in which a country has potential comparative advantage
A) Comprehensive development B) Primary-export-led development C) Import-substitution development D) Outward-looking development
When bad drivers line up to purchase collision insurance, automobile insurers are subject to the
A) moral hazard problem. B) adverse selection problem. C) assigned risk problem. D) ill queue problem.