The only difference between adaptive and rational expectations is that the theory of adaptive expectations assumes economic agents to be irrational
a. True
b. False
Indicate whether the statement is true or false
False
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From an economist's perspective, why are public restrooms often dirtier than restrooms in your home?
A. Restrooms in your house are easier to clean. B. Property rights give you an incentive to clean your restrooms. C. There are incentives like a salary for janitors to clean the public restrooms. D. More people use the public restrooms.
Aggregate demand includes: a. the demand for intermediate goods and final goods
b. all monetary and nonmonetary transactions. c. the demand for investment, including stocks, bonds, and gold. d. the demand for final goods and services.
Assume the firm is a profit-maximizing/loss-minimizing monopoly. Using the data in the graph above, calculate the firm's total profit or loss.
What is the opportunity cost of 1 tractor in terms of automobiles for the U.S. and Japan, respectively?
A. 0.5 automobiles and 2 automobiles
B. 0.5 automobiles and 1 automobile
C. 2 automobiles and 1 automobile
D. 2 automobile and .25 automobiles