Suppose Barbara looks out in the morning and sees a clear sky so decides that a picnic for lunch is a good idea. Last night the weather forecast included a 100% chance of rain by midday but Barbara did not watch the local news program
Is Barbara's prediction of good weather at lunch time rational? Why or why not?
No, this prediction is not using rational expectations. Although Barbara based her guess on the information that was available to her at the time, additional information was readily available that could have been used to improve her prediction.
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Not surprisingly, when financial institutions have consolidated more services under one roof, the amount of conflicts of interest has ________, which has led to ________ in unethical behavior
A) increased; an increase B) increased; a decrease C) decreased; an increase D) decreased; a decrease
Which of the following is not a major category of business structure?
A. Sole proprietorship B. Partnership C. Public agency D. Corporation