Which of the following provides support for the use of discretion in economic policy-making?
A) any policy rule that is based on a particular model will prove wrong if that model is wrong
B) the existence of a political business cycle
C) the conclusions of Friedman and Schwartz with respect to monetary and fiscal policy
D) the Watergate scandal
A
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Which of the following is true of property rights?
a. They are rights to use a public good without paying for it. b. They usually specify the owner's alternatives. c. The are associated with the exchange of commodities but not services. d. They are often open-ended and do not exhaustively specify the owner's alternatives.
In the graph shown, the globally constrained potential output is:
A. the LAS curve shown, but horizontal. B. the same as the LAS curve shown. C. to the left of the LAS curve shown. D. to the right of the LAS curve shown.
Markets tend to overallocate resources to the production of a good when
A. there are public goods produced. B. equilibrium occurs. C. there are positive externalities. D. there are negative externalities.
Which of the following examples would most likely be subject to survivor bias?
A. a study that randomly sampled men and women who suffered food poisoning from dining at a specific fast-food restaurant chain to determine the incidence of continued patronage of that particular chain of restaurants B. a study that randomly sampled flood victims whose homes were destroyed to see if they were likely to rebuild their homes on the same property C. a study that randomly sampled first-year law-school students to see how many survived to make it to their second year in law school D. a study that randomly sampled an equal number of 40-year old men and 60-year old men to measure incidences of Type 1 diabetes