"Assume that all individuals have perfect information about prices now and in the future, that they have identical tastes, that all markets are competitive, and that there is no government." This statement is indicative of how economists
a. apply the law of supply and demand.
b. employ marginal analysis.
c. are prevented from getting correct answers.
d. abstract for analytic purposes.
e. use realistic assumptions to develop theory.
d
Economics
You might also like to view...
The function of economic institutions is to:
a. determine the profit margin of producers. b. determine how much an economy benefits from trade. c. define the environment in which we can trade. d. define the terms of trade between nations.
Economics
Which of the following statements regarding the use of gold as money is false?
A) The money supply would be easy to control because of the predictability of new gold discoveries. B) It is durable. C) It has value other than money. D) It is acceptable to traders.
Economics