Because we cannot observe or measure utility
A) the predictions of marginal utility theory cannot be verified.
B) marginal utility theory is incomplete and so its predictions might not be valid.
C) marginal utility theory must be derived from assumptions about demand curves because demand curves can be measured.
D) None of the above answers are correct.
D
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The natural rate of unemployment is the amount of unemployment
A) associated with the business cycle. B) that exists when the economy goes into recession. C) equal to frictional plus structural unemployment. D) that exists when the economy is in an expansion.
How are interest rates and inflation rates related?
What will be an ideal response?
In a recession, the trade balance often improves because
a. service exports exceed manufactured good exports b. banks sell depressed assets c. fewer households can afford luxury imports d. direct investment abroad declines e. the capital account exceeds the current account
Suppose that in year 1 every adult in the country works 40 hours a week and GDP is $6.7 trillion. In year 2 every adult in the country works 45 hours a week and GDP is $7.5 trillion. Which of the following statements is true?
A) Per-capita GDP is necessarily higher in year 2 than year 1. B) People are "better off" in year 2 than in year 1 because there are more goods and services in year 2 than year 1. C) Government transfer payments were higher in year 2 than in year 1. D) a and b E) none of the above