With respect to how economists study the economy, which of the following statements is most accurate?
a. Economists study the past, but they do not try to predict the future.
b. Economists use "rules of thumb" to predict the future.
c. Economists devise theories, collect data, and analyze the data to test the theories.
d. Economists use controlled experiments in much the same way that biologists and physicists do.
c
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An export subsidy is
A) a payment to a firm or individual that ships a good abroad. B) a fee that is charged to a country that ships goods to the U.S. C) a payment made to a foreign government in return for preferential trade treatment. D) illegal in the U.S. but is fairly common in the rest of the world. E) a limit on the quantity of a good or service that can be sold abroad.
When the price of ulcer medication increased by $20 per 100 tablets, a drug company's revenue increased by $10 million. Its elasticity of demand coefficient (in absolute terms) must be: a. zero
b. greater than one. c. less than one. d. infinitely large.
In which of the following situations can a firm or individual apply for a patent?
A. A firm develops a new tool that makes cutting grass much easier. B. An author publishes a new novel. C. Nicki Minaj, a recording artist, releases a new CD in the market. D. All of these are activities that can be patented.
Complete the table showing the relationship between a percentage change in the price level and the percentage change in the value of money. Calculate the percentage change of money to one decimal place.
