Rational expectations are the theory according to which people optimally use all the information they have, including information about government policies, when forecasting the future.

Division of labor has caused output to rise dramatically since the industrial revolution

a. True b. False Indicate whether the statement is true or false

Which of the following would be an example of a fixed cost?

A) the electric and gas bills B) wages paid to temporary workers C) property insurance premiums D) expenditures on imported raw materials