Your best friend calls and gives you the latest stock market "hot tip" that he heard at the health club. Should you act on this information? Why or why not?
What will be an ideal response?
No, if this information is readily available, it will already be reflected in the stock price.
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The symbiotic relationship between mass production and mass consumption was best personified by
A. John D. Rockefeller. B. Andrew Carnegie. C. Henry Ford. D. John Deere.
Which of the following statements is true?
A) Randomization allows for classification of participants according to their choice. B) The subjects in the treatment group and the control group of an experiment are treated identically, except along a single dimension. C) Randomization is not used in medical experiments. D) The subjects in the treatment group and the control group of an experiment are identical in all respects and they are treated identically.
An explanation for the low saving rate in the United States consistent with the demonstration effect includes:
A. highly-developed financial systems making it easy to buy homes with down payments under 15 percent. B. households spending beyond their means to keep up with community standards. C. large and persistent capital gains. D. relatively generous government assistance for the elderly and large down payments required for home purchases.
Suppose there are two policy options facing a vote in the Senate. In the first, government spending will increase $100 billion, while the second option is to cut taxes by $100 billion. A Keynesian economist would argue for
A. the spending option because it has a bigger impact on total spending. The spending directly raises total spending plus it works through the multiplier, while the tax cut only works through the multiplier. B. the spending option because it won't affect the deficit the way the tax cut would. C. the tax option because it also affects the incentives workers face. Long-run aggregate supply will increase with the tax cut, but not with the spending increase. D. the tax option because it is easier to pass. The effects on total spending would be identical.