When people use recent information to gradually adjust their forecasts of inflation, they are said to have:
a. static expectations.
b. adaptive expectations.
c. rational expectations.
d. spiraling expectations.
b
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For Product X, the income elasticity of demand is -2.56. Which of the following is therefore TRUE?
A) Product X is a necessity. B) Product X is a luxury. C) Product X is an inferior good. D) Product X is a normal good.
Voters may choose to remain uninformed about an issue because of:
a. the special-interest effect. b. rational ignorance. c. bureaucratic inefficiency. d. the shortsightedness effect.
Refer to the information provided in Figure 13.4 below to answer the question(s) that follow. 
Figure 13.4Refer to Figure 13.4. At its production point, the ________ for this firm is $11.
A. marginal cost B. profit-maximizing price C. average total cost D. marginal revenue
The above figure illustrates a firm's total revenue and total cost curves. Which one of the following statements is FALSE?
A) Economic profit is the vertical distance between the total revenue curve and the total cost curve. B) At output Q1 the firm makes zero economic profit. C) At an output above Q3 the firm incurs an economic loss. D) At output Q2 the firm incurs an economic loss.