Which of the following is correct?
a. "Theory" and "hypothesis" are interchangeable terms meaning the same thing.
b. A hypothesis may result from a tested and confirmed theory
c. A theory may result from a tested and confirmed hypothesis.
d. A hypothesis is a theory whose formulation relies on mathematics.
c
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When the Fed ________ the federal funds rate, the opportunity cost of firms' investment ________ and so the quantity of investment ________
A) increases; falls; increases B) decreases; falls; decreases C) increases; rises; decreases D) decreases; rises; decreases E) increases; rises; increases
The social interest theory of regulation predicts that the political process will seek to minimize
A) producer surplus. B) consumer surplus. C) total surplus. D) deadweight loss.
The small-firm effect refers to the
A) negative returns earned by small firms. B) returns equal to large firms earned by small firms. C) abnormally high returns earned by small firms. D) low returns after adjusting for risk earned by small firms.
They very ________ growth of office and retail space in the 1980s was due in part to financial deregulation that ________
A) slow, limited the growth of bank and S&L deposits B) slow, gave massive tax advantages to mortgage lending C) rapid, allowed S&Ls to make business real estate loans D) rapid, raised the depreciation tax deduction on these structures