The self-correcting tendency of the economy means that falling inflation eventually eliminates:

A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.


Answer: B

Economics

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Which of the following statements is true?

A) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ. B) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. C) Optimization in levels is based on ordinal analysis. D) Optimization in differences is based on marginal analysis.

Economics

Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window.   Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000If Quick Burger has the legal right to operate a drive-through window, then the Sunshine Café would have to pay Quick Burger at least ________ per month to NOT operate a drive-through window.

A. $24,000 B. $11,000 C. $9,000 D. $15,000

Economics

Give three examples of how businesses or nonprofit institutions use elasticity of demand to charge consumers different prices

Please provide the best answer for the statement.

Economics

Which of the following is not a way we sometimes confuse correlation and causation?

A. Omitted variables B. Correlation without causation C. Reverse causality D. Non-linear relationships

Economics