The rational expectations school of thought argues that people form expectations based on:

a. all available information.
b. only on information they believe to be "insider" information.
c. their own instincts.
d. only past information and experience.

a

Economics

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A firm will shut down in the short-run if

a. P>AVC b. P

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The income and substitution effects of a change in the wage rate

a. always work in the same direction b. always work in opposite directions c. work in opposite directions only if the change is a decrease d. work in the same direction only if the change is an increase e. work in the same direction only if the change is a decrease

Economics