Which of the following statements is NOT true?
A. Economics is the study of how people allocate their limited resources to satisfy their unlimited wants.
B. Economics does not use theories.
C. Economics is a social science.
D. Economics is an empirical science.
Answer: B
You might also like to view...
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand for reserves, ________ the federal funds rate, everything
else held constant. A) decreases; lowering B) increases; lowering C) increases; raising D) decreases; raising
Purchasing power parity:
A. is the theory that purchasing power in different countries should be the same when stated in localcurrencies. B. allows us to compare the cost of living across different locations. C. almost always holds in reality. D. All of these statements are true.
In the short run, a perfectly competitive firm is producing an output level where marginal cost equals $10, average total cost equals $7, and marginal revenue equals $9 . Which of the following statements is correct?
a. The firm is earning an economic profit which could be increased by raising output. b. The firm is earning an economic profit which could be increased by lowering output. c. The firm is maximizing its economic profit. d. The firm is suffering an economic loss which could be decreased by raising output. e. The firm is suffering an economic loss which could be decreased by lowering output.
If the nominal exchange rate does not change, but U.S. prices rise, the real exchange rate has ________, and U.S. imports are likely to ________
A) increased; rise B) increased; fall C) decreased; rise D) decreased; fall