Which of the following scenarios illustrates the theory of rational expectations?
a. Kyle decides to buy a plot of land near the new industrial hub of his city
b. Sheila decides to take up a job in a shoe store rather than studying further.
c. Dean decides to look for new jobs when the economy is in recession.
d. Kevin determines that the average miles per gallon on his last three car trips is 37.
a
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In 1981, in San Francisco Solano, Argentina, about 1,800 families took over a piece of wasteland. The government was able to deed 60 percent of this land to some families while the remaining part could not be deeded. The resulting houses varied greatly, based on whether the residents received title. Those who received title also behaved differently, having fewer children, and the children
experienced more education and better health. This is an example of the results from: a. scarcity. b. economic growth. c. economic freedom. d. private property rights. e. improved quality of life.
Economics is:
a. concerned with the problem of scarce resources combined with unlimited wants. b. the study of how to make money in the stock market. c. highly theoretical and has little practical application. d. primarily concerned with day-to-day business decision making. e. a decision making process involving individuals and firms rather than governments.