Rational expectations theory is based on the assumption that:
A. wages and prices are flexible upward but inflexible downward.
B. both product and resource markets are very competitive.
C. product markets are competitive, but resource markets are monopolistic.
D. both product and resource markets are monopolistic.
B. both product and resource markets are very competitive.
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Suppose the following information describes the economy:Household saving300Business saving700Government purchases1,000Government transfers and interest payments500Government tax collections1,500GDP5,000Public saving equals ____and national saving equals ________.
A. 1,000; 2,000 B. 0;0 C. 0; 1000 D. 0; 300
Over the last 50 years, how has
a. the labor force participation rate changed? b. the men's and women's labor force participation rates changed?
Who is most likely to be poor?
A. Someone over age 65 B. A Hispanic American C. A black person D. Someone living in a female-headed household with children
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?
A. April has a comparative advantage in painting kites but not snowboards. B. April has a comparative advantage in painting snowboards but not kites. C. April has a comparative advantage in painting both goods. D. April does not have a comparative advantage in painting either good.