An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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Which of the following statements is true?
A. Economic models are sometimes good for explaining one set of events and poor for explaining other sets of events. B. A model that has correctly predicted events for the past several years will not be wrong in the future. C. Economic models are either right or they are wrong. D. An economic model that is not always true is not useful and should not be used.
Refer to Scenario 7.1. Which piece of information would NOT be helpful in calculating the marginal cost of the 75th unit of output?
A) The total cost of 75 units B) The total cost of 74 units C) The variable cost of 75 units D) The variable cost of 74 units E) The firm's fixed cost
Negative externalities are costs incurred by: i. buyers ii. sellers iii. someone other than buyers or sellers
a. (i) only b. (ii) only c. (iii) only d. both (i) and (ii)
Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers ________ while the supply of Baltimore newspapers ________, the equilibrium price will definitely decrease.
A. increases; increases B. decreases; decreases C. decreases; increases D. increases; decreases