Overconsumption of a product can be caused by imperfect information

The after-tax rate of return is defined as the pretax profit rate

a. minus the rate at which profits are taxed. b. multiplied by 1 minus the rate at which profits are taxed. c. divided by 1 minus the rate at which profits are taxed. d. plus investment credits. e. None of the above

Even though households may have unlimited wants, they have to allocate their spending carefully because they

a. do not want their credit card bills to be too high b. worry about their taxes c. have limited intelligence d. have limited incomes e. basically want to become wealthy