The idea that economic agents do not make systematic errors because they use all information efficiently is called the

Suppose that world demand shifts away from agricultural goods toward hightech manufactured goods. If land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors, which of the following is TRUE?

a. The percentage change in capital income is less than the percentage change in labor income. b. The percentage change in labor income is greater than the percentage change in the relative price of manufacturing goods. c. The percentage change in capital income is greater than zero. d. The percentage change in labor income is more than the percentage change in the relative price of manufacturing goods.

Kiwis and strawberries are substitutes for consumers. An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of

strawberries. A) raises; increases B) lowers; probably changes, but more information is needed to determine if it increases or decreases C) lowers; increases D) probably changes, but more information is needed to determine if it rises or falls; increases E) raises; probably changes, but more information is needed to determine if it increases or decreases