The last time a recession hit the country of Valtonia, the price of real estate fell significantly. When Craig learns that this country's stock market has crashed, he immediately decides to sell his houses. This is an example of the theory of _____
a. absolute advantage
b. rational expectations
c. adaptive expectations
d. sticky wages
c
You might also like to view...
The Federal Reserve System regulates the money supply primarily by
A. controlling the production of coins at the U.S. mint. B. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans. C. restricting the issuance of Federal Reserve Notes because paper money is the largest portion of the money supply. D. altering the reserves of commercial banks, largely through sales and purchases of government bonds.
If a book publishing company sells its books to retailers with the explicit condition that the retailers may not resell the books below a specified price, this is an example of ________ and it ________ illegal per se.
A) resale price maintenance; is not B) price fixing; is not C) resale price maintenance; is D) price fixing; is
If the goal of the union is to maximize member income, then
A) a wage rate will be set in the inelastic portion of the demand curve. B) a wage rate will be set at the point at which the elasticity of demand equals 1 and marginal revenue is positive. C) a wage rate will be set at the point at which marginal revenue equal zero. D) the supply of labor must be inelastic.
Government standards for products sold in the domestic market can have the effect of protecting domestic producers from foreign competition
a. True b. False Indicate whether the statement is true or false