The concept of "rational expectations" is consistent with the notion of
a. utility maximization.
b. profit maximization.
c. strong mechanisms towards equilibrium in markets
d. auction markets.
e. all of the above.
E
You might also like to view...
The personal distribution of income in the United States shows that
A) income is equally distributed. B) the poorest 20 percent of individuals receive approximately 20 percent of total income. C) the richest 20 percent of individuals receive approximately 50 percent of total income. D) the poorest 60 percent of individuals receive approximately 50 percent of total income. E) the richest 20 percent of individuals receive approximately 25 percent of total income.
Refer to Table 11-7. What is the average variable cost per unit of production when the firm produces 90 lanterns?
A) $490 B) $33.67 C) $7.67 D) $5.44
According to economists who explain the Phillips curve, a decline in the unemployment rate causes higher rates of inflation because
a. workers are concerned about protecting their jobs and so they accept smaller wage increases b. during periods of GDP growth, firms find it easier to pay higher wage rates and charge higher prices without worrying about losing markets c. firms decrease production and compete less aggressively for workers during periods of inflation d. workers feel less secure about their jobs and demand higher pay raises e. the Laffer curve comes into effect
Which statement is true?
A. On the production possibilities frontier there is zero unemployment. B. On the production possibilities frontier 95 percent of the labor force is employed. C. To get out of a recession, we must produce at some point beyond our production possibilities frontier. D. To have economic growth, we must push the production possibilities frontier inward.