Why do economists pay particular attention to inverted yield curves?
What will be an ideal response?
Inverted yield curves can be highly useful for forecasting economic slowdowns. Usually the yield curve turning inverted predicts an economic slowdown, usually with a one-year lag.
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The assumption that eliminating one family member is presumed to have no effect on family income is realistic
Indicate whether the statement is true or false
GNP is the:
A. aggregate final output of the citizens and businesses of an economy in a one-year period. B. total market value of all final goods and services produced in an economy in a one-year period. C. aggregate output of the citizens and businesses of an economy in a one-year period. D. total market value of all goods and services produced in an economy in a one-year period.
Self-interest
A) implies that a person must try to increase wealth at all times. B) implies that people will not give away wealth. C) is consistent with many goals that people pursue, including betterment of others. D) applies only to people in market settings.
When a government imposes price controls, the result is that
A. all trades are as mutually beneficial to each party as possible. B. the price system operates more efficiently. C. scarcity usually disappears. D. the rationing function of prices is not allowed to function freely.