You Are Writing a Report Analyzing Whether Your Company Should

question 4

Multiple Choice

You are writing a report analyzing whether your company should hire a new vendor to provide data-warehousing services. You have found a white paper online that looks promising. How can you judge the degree to which the authors are unbiased?

• A) Check to see if the authors have offices in the same cities as your potential data-service vendors.
• B) Check to see if the authors work as industry-wide consultants or as contractors for specific vendors.
• C) Check to see if the authors have advanced degrees.
• D) Check to see if the authors appear to be related to each other.

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Definitions:

Rational Expectations

A theory in economics suggesting that individuals make decisions based on their rational outlook, available information, and past experiences.

Adaptive Expectations

A theory in economics that expectations of future events are constructed based on past events and that agents adjust slower to new information.

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation as a primary method for managing the economy and combating inflation.

Money Supply

The comprehensive sum of money resources in an economy, encompassing cash, coins, and deposits in checking and savings accounts, at a specific moment.