The hypothesis suggesting that people combine the effects of past policy changes on economic variables with their own judgment about the future effects of current and future economic policy is referred to as the
A. passive expectations hypothesis.
B. adaptive expectations hypothesis.
C. rational expectations hypothesis.
D. active expectations hypothesis.
Answer: C
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Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is accounting profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
A price floor is the minimum price that consumers have to pay for a particular product
a. True b. False Indicate whether the statement is true or false
There is a shortage when price is _____ the equilibrium level.
Fill in the blank(s) with the appropriate word(s).
Most of the poverty in this country can be traced to
A. the recession that began in 1990. B. the heritage of slavery. C. five decades of social and economic change. D. the War on Poverty.