Which of the following statements is true?
A) Testing with data is essential to develop a good theory.
B) Knowledge of economics complicates decision making.
C) Cost-benefit analysis can be applied only to limited economic decisions.
D) Economics is more of a theoretical subject with limited applications in the real world.
A
You might also like to view...
Most doctors are employed by the government and most hospitals are owned by the government in
A) Canada. B) Japan. C) the United Kingdom. D) the United States.
Which of the following is an example of the U.S. government's use of a "command-and-control" approach to reducing pollution?
A) In 1990 Congress approved measures designed to reduce sulfur dioxide emissions to 8.5 million tons annually by 2010. B) The government issued electric utilities tradable emission allowances in order to reduce emissions of nitrogen oxide. C) In the 1980s the U.S. government required the installation of catalytic converters to reduce emissions from all new automobiles. D) The U.S. government imposed a tax on electric utilities to reduce damages from acid rain.
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517Should John spend a third hour cleaning windows?
A. Yes, because the additional amount he would earn is $6, which is better than earning nothing. B. No, because the additional amount he would earn is $6, which is less than his opportunity cost of $7. C. Yes, because he would earn $28. D. Yes, because the additional amount he would earn is $14, which is greater than his opportunity cost of $7.
Per capita GDP is
A. The sum of consumer goods, investment goods, government services, and net exports. B. The dollar value of GDP divided by total population. C. The value of the factors of production used to produce output in a country. D. A dollar measure of the economic growth rate of a country.