The rational expectations hypothesis states that
A. people incorporate past and present economic information into decision making.
B. prices do not adjust in a downward direction.
C. consumers do not understand the effects of monetary and fiscal policy.
D. individuals always behave irrationally.
Answer: A
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The formal and informal rules governing the organization of a society on the whole, including its laws and regulations, are referred to as:
A) organizational structure. B) religious norms. C) cultural scenario. D) institutions.
If a tariff is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will ________ and U.S. producer surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
The supply of land being fixed, the earnings from land are called transfer earnings
a. True b. False Indicate whether the statement is true or false
Which of the following combinations of changes in government spending and taxes in necessarily expansionary?
A) Increase/Increase B) Increase/Decrease C) Decrease/No change D) Decrease/Increase E) Decrease/Decrease