It is not uncommon for business professors to make a statement such as the following: "While economists are happy in their never-never land of economic theory, we business professors seriously study facts of the real world"
According to your textbook, the statement is A) generally true.
B) misleading; even business professors rely upon theories to discriminate among and make sense out of the facts they choose to study.
C) confused, because in actuality it is the business professors who are trapped in the never-never land of theory, while the economists seriously study real-world facts without using theories.
D) false, because economics and business are one and the same discipline.
B
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An upward-sloping Engel curve indicates that
a. the good is normal. b. the good is inferior. c. demand for this good is elastic. d. demand for this good is inelastic.
If an increase in government spending of 40 units accompanied by an equal increase in taxes caused equilibrium income to rise by 40 units, the autonomous expenditure multiplier must be
a. 10. b. 1. c. 4. d. not enough information is given to calculate the multiplier.
In reference to industrywide advertising, managers of non-agricultural and non-franchised industry associations face which of the following problems?
A) The participating firms can both free -ride and protest the amount they are asked to pay for the advertising. B) The participating firms can protest the amount they are asked to pay for the advertising, but they cannot free -ride. C) The participating firms can neither free -ride nor protest the amount they are asked to pay for the advertising. D) The participating firms can free-ride, but they cannot protest the amount they are asked to pay for the advertising.
If the U.S. imposed import quotas on cotton, then which of the following would rise?
a. the U.S. real exchange rate and U.S. net exports b. the U.S. real exchange rate but not U.S. net exports c. U.S. net exports but not the U.S. real exchange rate d. neither the U.S. real exchange rate nor U.S. net exports