The Idea That Economic Agents Do Not Make Systematic Errors

question 5

Multiple Choice

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

• A) consistency hypothesis.
• B) rational expectations hypothesis.
• C) information efficiency hypothesis.
• D) principle of maximizing behavior.

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Definitions:

W. E. B. DuBois

An influential African-American sociologist, historian, and civil rights activist known for his contributions to the understanding of the African-American experience and the fight for equality.

Empirical Analysis

The use of observed and measured phenomena to investigate relationships and test theories.

Sociology

The study of human behavior in society.

Conflict Theory

A theoretical perspective that emphasizes the role of power and coercion in producing social order.