People are said to have ________ if they use all available information in forming their expectations.
A) rational expectations
B) insider information
C) unbiased prognostication
D) psychic insight

Question

Quizplus · Accepted Answer

Rational expectations theory states that people make decisions based on all available information and use it to form their expectations about future events. This theory is often used in economics and finance to analyze how investors and market participants make decisions based on current information and past experiences. Rational expectations assume that individuals are rational and use all available information to make their decisions, leading to more accurate predictions and outcomes. Option B) insider information is illegal and unethical and can lead to market manipulation. Option C) unbiased prognostication is similar to rational expectations but not as precise in terms of using all available information. Option D) psychic insight is not a valid or reliable method for forming expectations in the real world.

People Are Said to Have ________ If They Use All