The economic way of thinking is
a. a set of historical generalizations that indicates what goods should be produced.
b. a body of statistical data that indicates how an economy should be organized.
c. a set of basic concepts that helps one understand human choices.
d. a set of complex, highly abstract theories that provides persons skilled in statistics with the information necessary to tell others what choices they should make.
C
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Which of the following best describes the three fundamental economic questions?
a. hat to produce, when to produce, and where to produce. b. What time to produce, what place to produce, and how to produce. c. What to produce, when to produce, and for whom to produce d. What to produce, how to produce, and for whom to produce.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and nominal value of the domestic currency falls. b. The real risk-free interest rate falls, and nominal value of the domestic currency falls. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
The following depicts a normal-form game of price competition.Firm AFirm B??Low PriceHigh Price?Low Price0,025,-5?High Price-5,2510,10What is the maximum interest rate that can sustain collusion?
A. 33 percent B. 25 percent C. 66.7 percent D. 15 percent
Which of the following is a true statement about U.S. job gains and losses under free trade agreements?
A) Whether jobs have been gained or lost, the size of these gains or losses is small relative to total U.S. job creation. B) Free trade agreements have resulted in a significant loss of jobs in the U.S. C) Free trade agreements have resulted in a significant gain in jobs in the U.S. D) Free trade agreements have resulted in no change in jobs in the U.S.