Which of the Following Is True

question 32

Multiple Choice

Which of the following is true?

• A)Economic reasoning implies that individuals will acquire all possible information about a choice before making it.
• B)It is not rational for people to make decisions that turn out to be mistaken.
• C)Reducing information costs to consumers and suppliers could permit more intelligent market decisions and lead to greater satisfaction.
• D)Occupational licensing laws generally act to protect misinformed consumers from getting shoddy services and enhances competition, leading to lower prices.
• E)All of the above are true.

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Definitions:

Money Supply

The entire sum of monetary holdings accessible in an economy at a certain period.

Travelers Checks

Preprinted, fixed-amount checks designed to allow the person signing them to make payments or exchange for local currency, used mainly by travelers to protect against theft or loss.

M1 Balance

The most liquid components of the money supply, including physical currency, demand deposits, and other assets that can quickly be converted to cash.

Currency

A form of currency widely accepted in a specific nation or economic setting.