In the early 2000s, analysts feared that low academic achievement in math in the United States may reduce U.S. economic growth by as much as half a percentage point per year. In terms of factors leading to growth, the low math scores indicate that the United States may be at a growing disadvantage in terms of:
A. human capital.
B. growth-compatible institutions.
C. technology.
D. social capital.
Answer: A
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The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What change in quantity best represents his income effect?
A) 3 B) 10 C) 15 D) 7
Extraction of petroleum in the current period will shift the supply curve of petroleum outward in the future resulting in a fall in price of petroleum
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Consider the following simple regression model y = 
0 + 1x1 + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument relevance?
A. Cov(z,u) > 0
B. Cov(z,u) < 0
C. Cov(z,x) 
0
D. Cov(z,x z) = 0