According to the text, if individuals base their expectations on economic models, we say that their expectations are:
A. extrapolative.
B. adaptive.
C. historical.
D. rational.
Answer: D
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Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt:
A. built the first factory for mass production. B. invented the steam locomotive. C. successfully lobbied British parliament for the enactment of patent legislation to protect new inventions. D. invented and built a more powerful and efficient steam engine.
Refer to the information provided in Figure 8.11 below to answer the question(s) that follow. 
Figure 8.11Refer to the Figure 8.11. Assuming wool is a perfectly competitive industry, the demand curve faced by each wool producer is ________ starting at $3.00 per pound.
A. upward-sloping B. downward-sloping C. vertical D. horizontal
If a household member is not in the labor force, it is because he or she has decided his or her time is more valuable in nonmarket activities.
Answer the following statement true (T) or false (F)
Refer to Figure 2-8. Suppose Vidalia is currently producing 120 dozen roses per period. How many orchids is it also producing, assuming that resources are fully utilized?
A) 20 dozen orchids B) 32 dozen orchids C) 44 dozen orchids D) 68 dozen orchids