Adam Smith's behavioral assumption about humans was that people

A) typically act irrationally.
B) usually act in a rational, self-interested way.
C) are consistently greedy.
D) typically act randomly.

Answer: B

Economics

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Under a fixed exchange rate system, if the inflation rate of the United States is less than the inflation rate of other nations, the

A) United States will develop a trade surplus. B) dollar will appreciate. C) United States will develop a trade deficit. D) dollar will depreciate.

Economics

If there's an increase in the future marginal product of capital in a large open economy, it causes the current account to ________ and saving to ________

A) fall; rise B) rise; remain unchanged C) fall; remain unchanged D) rise; rise

Economics