Economists Make Predictions About Individual Behavior Based on the Assumption

question 173

True/False

Economists make predictions about individual behavior based on the assumption that people exploit opportunities to make themselves better off.The fact that different individuals make different choices when confronted with the same situation implies that this assumption is often violated.

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Definitions:

Minimum-Wage Jobs

Positions that pay the lowest legal hourly rate employers are permitted to pay workers, often in unskilled or service-oriented fields.

Low-Income Cutoff

Is Statistic Canada’s term for the income threshold below which a family devotes at least 20 percent more of its income to the necessities of food, shelter, and clothing than does an average family.

Market Basket

A selected set of goods and services used to track the price level or cost of living over time.

Poverty Measure

A quantitative method used to determine the economic threshold that defines poverty, based on income, consumption, or other social indicators.