The assumption that given the strategy chosen by the other participant, a player will always choose the strategy that brings him or her the best payoff is called
A) strategic interaction.
B) economic self interest.
C) the rationality assumption.
D) the profit-maximizing assumption.
C
Economics
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If your disposable income increases from $10,000 to $15,000 and your consumption increases from $9,000 to $12,000, your marginal propensity to consume is:
A.0.8 B.0.6 C.0.4 D.0.2
Economics
The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. If real GDP is equal to $400 billion then,
A) unplanned inventory is -$300 billion. B) aggregate expenditure is equal to consumption expenditure. C) unplanned inventory is -$200 billion. D) aggregate expenditure is $450 billion. E) unplanned inventory is $200 billion.
Economics