Answer the following statements true (T) or false (F)
1) The "sticky price" model is the only one used by macroeconomists.
2) (Consider This) The term "economic investment" refers only to money spent purchasing newly
created capital goods such as factories, tools, and warehouses.
3) (Consider This) If a farmer purchases 10 acres of farmland from a neighboring farmer, this
would be considered an economic investment.
4) (Consider This) If Ford Motor Company purchases factory equipment previously used by
General Motors, this would be considered an economic investment.
1) F
2) T
3) F
4) F
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The theory of optimal currency areas argues that social welfare is ________ when countries participate in ________
A) increased; a monetary union B) decreased; a monetary union C) increased; a managed float system D) decreased; policy coordination
Which of the following utility comparisons would a traditional economist make?
a. Priya gets twice as many utils from eating almonds as Mateo does. b. Aponi gets the same number of utils from eating cashews as Priya gets from eating almonds. c. Almonds have more utils than cashews because of the health benefits. d. Mateo likes walnuts and cashews equally, so he gets the same number of utils from both.
If a firm is a price taker, then the demand curve for the firm's product is:
A. Equal to the total revenue curve B. Perfectly inelastic C. Perfectly elastic D. Unit elastic
If the MPS is one-third, a $100 increase in net exports will
A) reduce real Gross Domestic Product (GDP) by $300. B) reduce real Gross Domestic Product (GDP) by $100. C) increase real Gross Domestic Product (GDP) by $300. D) increase real Gross Domestic Product (GDP) by $33.