People are said to have rational expectations if they
A. use all available information in forming their expectations.
B. assume that this year's inflation rate will be equal to the average inflation rate over the past 10 years.
C. assume that this year's inflation rate will be the same as last year's inflation rate.
D. merely guess at the inflation rate.
Answer: A
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Complete this statement. Sellers compete against other sellers and
A) sellers compete against buyers. B) sellers cooperate with buyers. C) buyers cooperate with other buyers. D) both A and C are true.
Suppose the government introduced a ceiling on lawyers' fees
How would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and the producer surplus of law firms change? Would this fee ceiling result in an efficient and fair use of resources? Why or why not?
The concept of "economic pessimism" stems from
A) the theory and empirical fact which states that developing nations face declining export prices relative to increasing import prices. B) the fact that economic growth in an era of globalization is difficult to attain. C) the fact that smaller countries would not enjoy comparative advantage unless they are allowed to subsidize some of their industries. D) the fact that it is impossible to achieve desired economic development without adopting full democratic principles. E) None of the above.
The Great Recession began in ________ and ended in ________
A) December 2007; June 2009 B) December 2007; December 2011 C) October 2008; June 2009 D) October 2008; December 2011