When economists say that people act rationally in their self interest, they mean that individuals _______?

Related Mcqs:

1. According to economists, economic self-interest:

   A. is a reality that underlies economic behavior
   B. has the same meaning as selfishness
   C. is more characteristic of men than of women
   D. is usually self-defeating

   Submitted by: Mansoor Ul Haque

2. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

   A. Supply-side economics
   B. neo-Keynesian economists
   C. rational-expectations economists.
   D. new classical economists.

3. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?

   A. supply side economists
   B. neo-Keynesian economists
   C. rational -expectations economists
   D. New classical economists

4. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

5. Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

   A. really don’t disagree at all It just appears that they disagree.
   B. disagree because they have different values.
   C. none of these answers.
   D. disagree because they have different scientific judgments.

6. When economists say that developing countries have a dualistic economy the 2 parts referred to are ?

   A. modern sector and traditional sector
   B. town and country
   C. men and women
   D. rich people and poor people

7. By controlling the monetary base economists mean ?

   A. making banks keep a certain % of their assets as M0
   B. controlling the money multiplier
   C. restricting the amount of cash in circulation
   D. not allowing commercial banks to issue notes and coins

8. When economists talk about developing countries experiencing flight of capital they mean?

   A. money lent to the country being immediately invested abroad
   B. People investing their money in urban business rather than agriculture
   C. money moving around financial institutions rather than being invested in production
   D. people investing money abroad rather than in their own country

9. Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?

   A. Persuade the regulator to operate in the industry’s interests
   B. Persuade the regulator to act in the firms interests.
   C. Bribe the regulator.
   D. Persuade the government to change the regulatory regime.

10. According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

    A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
    B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
    C. aggregate supply will increase will increase aggregate output will increase and the price level will increase
    D. both aggregate supply and demand will increase will increase and the price level will increase