Economists use some familiar terms in specialized ways
a. to make the subject sound more complex than it is.
b. because every respectable field of study has its own language.
c. to provide a new and useful way of thinking about the world.
d. because it was too difficult to come up with new terms.
c
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In which of the following relationships does the intercept have a real-world interpretation?
A) the relationship between the change in the unemployment rate and the growth rate of real GDP ("Okun's Law") B) the demand for coffee and its price C) test scores and class-size D) weight and height of individuals
The Big Mac index:
A. is measured by The Economist. B. is a simple measure that indicates differing costs of living in different countries. C. converts the price of a Big Mac worldwide to dollars, and compares it to how much they cost in the U.S. D. All of these statements are true.
Refer to Figure 12.1. The concept of crowding in suggests that a government budget surplus would move the economy from point
A. E to point F. B. A to point C. C. C to point A. D. B to point A.
The interest rate that banks are charged when they borrow reserves from other banks is the
A. AAA corporate bond rate. B. prime rate. C. commercial paper rate. D. federal funds rate.