Answer:
The correct answer is letter "C": apply the assumption that people behave as if they act rationally with an aim to maximize utility.
Explanation:
The theory of rational expectations is mainly used in macroeconomics, with the idea that decisions of individuals will affect the future course of the economy. According to this theory, people's behaviors are based on <em>rationality, all the information that they have available, </em>and <em>past experiences.
</em>
Some of the rational expectations theory's premises are that <em>people hold expectations that will be met, variables values (price, output, and employment) are taken into account, </em>and <em>individuals are always trying to maximize their profits.</em>
Answer:
The correct answers are:
A) The effects of the Internet on the pricing of used cars. (Microeconomics)
B) The effect of government regulation on a monopolist's production decisions
. (Microeconomics)
C) The effects of government tax policy on long-term economic growth. (Macroeconomics)
Explanation:
The field of economics is usually broken down into two broad categories: Microeconomics and Macroeconomics. The goal of all economics is to analyze the production and consumption of finite resources like oil, wheat, capital or even labor. Microeconomics observes these issues from an individual or business perspective. Macroeconomics looks at the issues from the perspective of the country as a whole, and the policies affecting the economy. Thus:
A) The effects of the Internet on the pricing of used cars. (Microeconomics)
B) The effect of government regulation on a monopolist's production decisions. (Microeconomics)
C) The effects of government tax policy on long-term economic growth (Macroeconomics)
It can be called facial expressions
Answer:
Cost of goods sold is d. $1,600
Explanation:
The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.
1. January 1, Inventory 300 units, $5 per unit. Total $1,500
2. Purchasing:
In February, 500 units, $4 per unit. Total $2,000
In March, 200 units, $6 per unit. Total $1,200
The Xu Corporation uses a periodic inventory system and sells 300 units during the quarter.
Cost of goods sold = 200 x $6 + 100 x $4 = $1,200 + $400 = $1,600
