1)Economics does not study correct or incorrect behaviors, but rather it assumes that economic agents make the best decisions given their knowledge of the costs and benefits. What term best describes this behavior?

A. equitably

B. selfishly

C. emotionally

D. rationally

2) By definition, what is economics the study of?

A. how to make money in the stock market.

B. supply and demand.

C. the choices people make to attain their goals, given their scarce resources.

D. how to make money in a market economy.

3) What is the term in economics by which a group of buyers and sellers of a product come together to trade?

A. market

B. trade-off

C. collective

D. cooperative

4) Which of the following statements describes the actions of producers in the circular flow model?

A. hire...