The rationality assumption says that
A) people do not intentionally make decisions that would leave them worse off.
B) people never make decisions that would leave them worse off.
C) people do not respond to incentives since incentives require scarce resources.
D) all economic analysis must be normative.
A
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Economic theory of market forms between pure monopoly and perfect competition was largely nonexistent until the work of
a. Joan Robinson and Edward Chamberlin. b. Adam Smith and David Ricardo. c. Alfred Marshall and Francis Edgeworth. d. Wassily Leontief and Joseph Schumpeter.
A normal good is one:
A. whose amount demanded will decrease as its price decreases. B. whose demand curve will shift leftward as incomes rise. C. whose amount demanded will increase as its price decreases. D. for which the consumption varies directly with incomes.