The Principle That Consumers and Firms Optimize

question 5

Multiple Choice

The principle that consumers and firms optimize

• A)is not helpful because some economic agents may behave irrationally.
• B)is helpful because it determines the available technology.
• C)is explained by their work-leisure choices.
• D)only applies to perfectly competitive markets.
• E)is helpful because it allows us to analyze how economic agents respond to changes in their environment.

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Definitions:

Transmission Electron Microscope

A microscopy technique in which a beam of electrons is transmitted through a specimen to form an image.

Electromagnets

A type of magnet in which the magnetic field is produced by an electric current.

Reproduction

The biological process through which organisms produce offspring, either sexually or asexually.

Metabolism

The complex of life-sustaining chemical reactions in organisms that allow for the growth, reproduction, and maintenance of their structures as well as response to their environments.