The Belief That Workers and Consumers Incorporate the Likely Consequences

question 11

Multiple Choice

The belief that workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices is known as _____.

• A)the theory of supply and demand
• B)the rational choice theory
• C)the prospect theory
• D)the new trade theory
• E)the theory of rational expectations

---

Definitions:

Ethical Principle

Fundamental norms and values that guide moral conduct and decision-making.

Managed Care

A health care delivery system aimed at managing costs, utilization, and quality of care.

Insurance Benefits

Payments or services provided by insurance companies to policyholders in the event of an insured event or as a contractual arrangement.

Employee Assistance Program

Workplace-initiated programs that provide confidential resources and support to employees dealing with personal or work-related issues.