If a macroeconomist aggregates many markets into one, then
A. individual market differences are eliminated.
B. one must not confuse ravioli and hotdogs.
C. she is performing a meaningless exercise.
D. differences between products must still be noted.
Answer: A
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A weakness that could be noted about the unemployment rate is that it
A) does not account for the underutilization of workers. B) considers marginally attached workers as unemployed. C) overestimates the number of part-time workers. D) does not count part-time workers. E) counts discouraged workers as employed.
The capital and financial account measures ________
A) foreign investment in the United States minus U.S. investment abroad B) capital produced outside of the United States minus capital produced inside the United States C) capital used inside the United States but manufactured outside the United States D) capital used outside the United States but manufactured inside the United States
You are likely to think that the relative price of your good has risen and you should increase your output if you expected
A) the inflation rate to be 10% and the price of your good rose 7%. B) the inflation rate to be 10% and the price of your good rose 10%. C) the inflation rate to be 10% and the price of your good rose 13%. D) the inflation rate to be 0% and the price of your good fell 10%.
The expected value of a project is always the
A) median value of the project. B) modal value of the project. C) standard deviation of the project. D) weighted average of the outcomes, with probabilities of the outcomes used as weights.