The theory of rational expectations says that
a. workers make excellent choices of places to work.
b. workers make the best possible forecasts of inflation.
c. economists make rational expectations of inflation.
d. economists expect workers to be rational.
b
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If at an output of 10 units a monopolist is earning a positive profit, marginal revenue is $6, and marginal cost is $4, then the monopolist:
a. is in equilibrium. b. should increase output. c. should reduce output. d. should lower the price at the current output level. e. should raise the price at the current output level.
Why is it possible that the economy will not self-correct out of a recessionary gap?
An optimal choice can be characterized as a decision made by someone who is satisficing.
Answer the following statement true (T) or false (F)
Most firms have very little flexibility in their choice of input proportions.
Answer the following statement true (T) or false (F)