Which of the following statements is false?
A) A theory should be judged based upon whether or not it tells us the things we want to hear.
B) Scientists are interested in finding out when their theories are wrong or right.
C) Scientists are interested in building theories that can be refuted.
D) If evidence is consistent with a theory's predictions, we state that the evidence fails to reject the theory.
A
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During the last half of 2012, the U.S. unemployment rate was just under 8 percent. Historical experience suggests that this is
a. above the natural rate, so real GDP growth was likely low. b. above the natural rate, so real GDP growth was likely high. c. below the natural rate, so real GDP growth was likely low. d. below the natural rate, so real GDP growth was likely high.
Which of the following shifts long-run aggregate supply right?
a. an increase in either technology or the human capital stock. b. an increase in human capital but not technology. c. an increase in technology, but not the human capital stock. d. neither an increase in technology nor the human capital stock.
Figure 16.1A firm that generates pollution is illustrated in Figure 16.1. If the government would like to induce this firm to abate, or reduce, its pollution by A1 tons, it will impose a pollution tax equal to:
A. P1. B. P1 minus P3. C. P2. D. P2 minus P3.
Suppose that the U.S. government is trying to garner support from Central American countries to pass the newest free trade agreement, Central American Free Trade Agreement (CAFTA). Why might Central American countries argue that in terms of agricultural
products, trade with the United States is not really truly competitive? What will be an ideal response?