People are said to have ________ if they use all available information in forming their expectations.
A. unbiased prognostication
B. rational expectations
C. psychic insight
D. insider information
Answer: B
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If the local slaughterhouse gives off an unpleasant stench, then the equilibrium quantity of meat will be ________ the quantity that maximizes total economic surplus.
A. lower than B. higher than C. equal to D. more equitable
Commercial paper has a minimum maturity of
A) one day. B) seven days. C) 30 days. D) 270 days.
According to the classical model, workers chose a level of labor that equates the
a. real wage and marginal product of labor. b. nominal wage and marginal product of labor. c. the marginal utility of consumption and the marginal disutility of lost leisure. d. the marginal utility of consumption with the real wage.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable. B. cannot be produced with the current state of technology. C. represents underallocation of resources. D. represents what the people want.