A large and diverse community has suffered a two-month drought
In attempting to deal with the crisis, four identifiable groups emerge: one decides to pray, a second decides to engage in a rain dance, a third decides to use modern meteorological principles and "seed" the clouds, and a fourth decides to do nothing. From the standpoint of economic theory, A) individuals in the first and second groups are acting irrationally and inefficiently.
B) individuals in each group are acting efficiently, given their own values and understanding of ends and means.
C) the third group is the smartest.
D) the fourth group is the most selfish.
B
You might also like to view...
Suppose that the U.S. price of gold is $35 per ounce and the German price of gold is 100 Deutsche Marks (DMs) per ounce. What is the implied exchange rate between the dollar and the DM?
A) $0.35 = DM1 B) $3500 = DM1 C) $2.8571 = DM1 D) $0.28571 = DM1
In reality, firms may seek to maximize
a. sales. b. profits. c. market share. d. All of the above can be correct, depending upon management, owners, and other factors.