Answer the following statements true (T) or false (F)
1. The study of economics is not useful for consumers because economic analysis focuses only on businesses and the economy.
2. The scientific method does not apply to economics because economics studies human behavior which cannot be generalized.
3. Economic principles are value judgments about what the economy should be like or the way the economic world ought to be.
4. If falling gasoline prices are good for the consumers, then it must be good everyone in the economy.
1. Answer: False
2. Answer: False
3. Answer: False
4. Answer: False
You might also like to view...
In the classical theory of aggregate demand, a decrease in the velocity of money leads to
a. a downward shift in the aggregate demand curve, a fall in prices, and no change in output. b. an increase in the aggregate demand curve, a rise in prices, and no change in output. c. no change in aggregate demand or supply because higher velocity increases the money supply. d. an upward shift in the aggregate demand curve, a fall in prices, and no change in output.
The production possibilities curve for two products is bowed out because
A) as the production of a good increases, opportunity cost increases. B) as the production of a good increases, opportunity cost is unchanged. C) the qualities of the resources are not identical. D) there are unemployed resources.
Which income maintenance program was started to support the nation's farmers?
A) Supplemental Security Income B) food stamps C) Earned Income Tax Credit program D) AFDC
When a firm sells its good abroad below the cost of producing the good the firm is
A. using the concept of comparative advantage. B. taking advantage of the infant industry argument. C. taking advantage of absolute advantage. D. dumping.