The hypothesis that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes is the basis of the
A) short-run Phillips curve hypothesis. B) rational expectations hypothesis.
C) demand-pull inflation hypothesis. D) adaptive hypothesis.
B
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P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
In the equilibrium of this game:
A. QRS-TV will air a sitcom and P-TV will air a reality show. B. QRS-TV will air a reality show and P-TV will air a sitcom. C. both stations will air sitcoms. D. both stations will air reality shows.
If a project involves risk, managers can account for the risk by ________ the discount rate, which ________ the present value of the future profits.
A) increasing; decreases B) decreasing; decreases C) increasing; increases D) decreasing; increases
Refer to the table below. If the price of hamburger falls from $5 to $3, then the weekly market quantity demanded will:
The table below shows the weekly demand for hamburger in a market where there are just three buyers.
A. Increase from 24 to 52
B. Decrease from 52 to 24
C. Increase from 120 to 156
D. Increase from 29 to 55
A tax system in which the average and marginal tax rates are the same for every level of taxable income and every change in income is an example of
A) regressive taxation. B) proportional taxation. C) progressive taxation. D) premium taxation.