Which of the following holds that economic decision making on all levels is unbiased and is based on all available information?
A. rational expectations based theory
B. bounded rationality theory
C. Keynesian cycle theory
D. adaptive expectations based theory
Answer: A
You might also like to view...
Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky, and therefore carry a higher cost than not retiring
By using all available information as they act to achieve their goals, these teachers are exemplifying the economic idea that A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.
If an asset cannot be sold quickly for cash without much loss of value, it is called:
A. illiquid. B. durable. C. liquid. D. fixed.
Real GDP per capita:
A. cannot grow more rapidly than real GDP. B. cannot grow more slowly than real GDP. C. necessarily grows more rapidly than real GDP. D. can grow either more slowly or more rapidly than real GDP.
The owners of a corporation are
A. the shareholders. B. taxed only once. C. completely in control of the firm. D. the employees of the firm.