A chief criticism of adaptive expectations is that
A) it assumes people ignore information that would be useful in making forecasts
B) people have a hard time adapting
C) it doesn't rely on technical analysis
D) it violates the efficient markets hypothesis
A
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A bakery can produce either cakes or cookies. If the price of cookies rises, then
A) the supply curve of cake shifts leftward. B) the supply curve of cake shifts rightward. C) there is a movement downward along the supply curve of cakes. D) there is a movement upward along the supply curve of cakes.
Which of the following is an example of a normative economic statement?
a. The inflation rate in the United States decreased 4 percent because the price of energy fell. b. The economy grew at an annual rate of 5 percent during the first quarter of this year. c. If two automobile companies merge, the price of automobiles will rise. d. An increase in international trade benefits some workers but hurts others. e. The minimum wage should be increased so that low-income workers can afford to keep up with the cost of living.