Economists Generally Assume That _____

question 43

Multiple Choice

Economists generally assume that _____

• A) firms act to maximize the dividends paid to stockholders.
• B) households act to maximize their wealth.
• C) households act to maximize utility.
• D) firms act to maximize social welfare.
• E) both households and firms act to minimize opportunity cost.

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Definitions:

Ingroup Prototype

The most representative or ideal example of the characteristics and behaviors of an ingroup, serving as a standard or model for group members.

Outgroup Prototype

refers to the generalized, often simplified, perceptions or stereotypes that individuals hold about members of a group to which they do not belong.

Relative Homogeneity Effect

A perception bias where individuals see out-group members as more similar to each other than in-group members, often leading to stereotyping.

Heterogeneous

Consisting of elements or components that are different from each other; diverse in character or content.