When economists describe the theory of consumer choice, they
a. portray people as simple and methodical with perfectly predictable patterns of behavior.
b. assert that consumer's decisions are based on which goods and services give them the greatest utility within their limited incomes.
c. point out that consumers rarely consider utility in their purchase decisions; they look at other factors like convenience, peer behavior, and price.
d. assert that the retail price is the only variable consumers really consider in making their purchasing decisions.
e. admit that consumer behavior is random and there is no credible economic theory to explain the phenomenon.
b
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Does the gross domestic product account measure the market value of all goods and services?
A) No, because that would include double-counting. B) Yes, because the data is readily available. C) Yes, except for illegally exchanged goods and services. D) Yes, otherwise the gross domestic product accounting system is not a reliable indicator of economic activity.
In what year was the Federal Reserve System created?
a. 1790 b. 1861 c. 1879 d. 1913 e. 1935