Economists Assume That Individuals________

question 136

Multiple Choice

Economists assume that individuals________.

• A)behave in unpredictable ways.
• B)will never take action to help others.
• C)prefer to live in a society that values fairness above all else.
• D)are rational and respond to incentives.

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Definitions:

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded, often considered the market-clearing wage.

Illegal Immigrants

Individuals who enter or reside in a country without the legal permission or in violation of the immigration laws of that country.

Minimum Wage Laws

Legislation that sets the lowest hourly rate of pay that employers can legally pay their workers, intended to protect employees from unduly low pay.

Scholarly Estimates

Quantitative or qualitative assessments made by academic researchers based on evidence and reasoning in a specific field of study.