Refer to Figure 18.4. With an import ban, what is the equilibrium price of gloves in Duckland?
A) $0 B) $8 C) $9 D) $12
D
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In order to be able to consume more in the future, you have to consume
A) less today and save the difference. B) more today to increase supply. C) more consumer goods. D) fewer capital goods.
In an economy in which velocity of money in circulation is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a: a. constant price level
b. slowly increasing price level. c. slowly decreasing price level. d. stable 4 percent growth in real GDP. e. stable 4 percent growth in nominal GDP.
In principle, we can
a. ignore positive statements when choosing among various public policy alternatives. b. ignore normative statements when choosing among various public policy alternatives. c. confirm or refute positive statements by examining evidence. d. confirm or refute normative statements by examining evidence.
Economic theory provides a basis for which variables are relevant and should be included in an econometric model. But econometrics provides tools to estimate ____ which tells us ____.
a. a model; the functional form that should be used b. causality; why it happens that way c. a parameter; how much or to what degree things change d. variables; the probability of a specific outcome