What assumption about human motivation is made in economics? Explain
What will be an ideal response?
Economists assume that people act as if motivated by self-interest. People respond predictably to opportunities for gain. That is, people look out for their own self-interest and do so in a rational manner.
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The demand curve for pizza in Foodieland is vertical. If a tax is imposed on each pizza bought, ________
A) the burden of the tax will fall entirely on the buyers B) the burden of the tax will fall entirely on the sellers C) the tax incidence on the sellers will be higher than that on the buyers D) the deadweight loss due to taxation will be large
The basic federal "antitrust" law prohibiting combinations in restraint of trade and attempts to monopolize is the
A) Clayton Act. B) Miller-Tydings Act. C) Robinson-Patman Act. D) Sherman Act. E) Taft-Hartley Act.