Which of the following statements about fiscal policy is TRUE?
A. Government can shift the aggregate demand curve inward by increasing spending.
B. Real Gross Domestic Product (GDP) can be increased above its long-run equilibrium only in the short run.
C. Government can shift the aggregate demand curve outward by reducing spending.
D. Real Gross Domestic Product (GDP) can never be increased above its long-run equilibrium, even for a brief period of time.
Answer: B
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The number of people who have gray hair is very high among residents living in Florida. A student concludes that living in Florida causes hair to turn gray. What is the flaw in this student's reasoning?
A) The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents. B) The student has failed to take into account other causes of gray hair. C) The student is using an inadequate sample size. D) The student is drawing a false conclusion; he is confusing cause and effect.
What is the difference between "straight-time pay," "commission pay," and "piece-rate pay"?
What will be an ideal response?
Harry needs to hire a lawyer but does not know how to find a good one. The lawyer is a(n)
A) experience good. B) credence good. C) logo good. D) search good.
When a good is rival in consumption,
a. one person's use of the good diminishes another person's ability to use it. b. people can be prevented from using the good. c. an unlimited number of people can use the good at the same time. d. everyone will be excluded from obtaining the good.