Rational expectations economists believe that the potential effects of government policy changes are ______ addressed by households and firms.
a. slowly
b. quickly
c. unreasonably
d. infrequently
b. quickly
Economics
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Which of the following is the largest component of federal spending today?
A) income security B) Social Security C) Medicare D) national defense
Economics
If quantity demanded for rice falls by 4% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is: a. 2.5
b. 0.5. c. 2. d. 0.40.
Economics
Because perfectly competitive markets rarely exist in the real world, the model has limited usefulness
a. True. b. False.
Economics
An example of an information asymmetry is when a worker knows more than his employer about his work effort
a. True b. False Indicate whether the statement is true or false
Economics