A hypothesis that assumes that people combine the effects of past policy changes on economic events and their own judgment about future effects of current and future policy changes is known as
A. active expectations.
B. adaptive expectations.
C. irrelevant expectations.
D. rational expectations.
Answer: D
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in a deadweight loss equal to areas
A. F + J. B. G + H. C. E + F + G + H + J. D. F + G + H + J.
Which of the following is an outcome of advertising for a monopolistically competitive firm?
a. Long-run average costs shift upward. b. The firm's demand curve keeps the same slope and shifts inward. c. Long-run average costs shift downward. d. The firm's demand curve becomes flatter and shifts inward.
The U.S. federal government spends its revenues in a number of ways. Rank the following spending categories from largest to smallest
a. income security, health, national defense, net interest b. health, national defense, net interest, income security c. net interest, health, income security, national defense d. national defense, income security, net interest, health
Refer to the accompanying figure. An increase in supply is represented by a shift from:
A. curve B to curve A. B. curve C to curve D. C. curve C to curve B. D. curve A to curve B.