If a sandwich shop produces zero sandwiches, which of the following costs will it still incur?
A. Employee's wages
B. Sandwich ingredients
C. Rented storefront
D. None of these costs will be incurred if they no longer make sandwiches.
C. Rented storefront
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Economic models
A. are always based on realistic assumptions. B. usually predict perfectly. C. can never be tested with real-world data. D. are used to describe cause-and-effect relationships. E. are too simple to be of much use.
National saving equals private saving plus government saving, which in turn equals
A) C + S + T. B) GDP + C + G. C) GDP + NFP. D) GDP + NFP - C - G.
An equation in the simultaneous equations model satisfies the order condition for identification if:
A. the number of excluded endogenous variables from the equation is at most as large as the number of right-hand side exogenous variables. B. the number of excluded endogenous variables from the equation is at least as large as the number of right-hand side exogenous variables. C. the number of excluded exogenous variables from the equation is at most as large as the number of right-hand side endogenous variables. D. the number of excluded exogenous variables from the equation is at least as large as the number of right-hand side endogenous variables.
Scarcity exists when:
A) a choice must be made among two or more alternatives. B) we face the notion of "all other things unchanged." C) countries and people find themselves facing poverty. D) the notions of normative economics come into play.