Which expression below matches most closely the way economists go about testing their models?
A. "Seeing the results is the only way to know if you are right."
B. "A bird in the hand is worth two in the bush."
C. "In the long run, we are all dead."
D. "Consistency is the hobgoblin of small minds."
Answer: A
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Which of the following is an argument against MNCs?
(a) A reduction in inequality. (b) An increase in the use of labor intensive technology. (c) A deterioration of the balance of payments accounts. (d) An increase in government tax revenue. (e) None of the above.
In the model of monopolistic competition, compared to a firm with a lower marginal cost, a firm with a higher marginal cost will set a ________ price, produce ________ output, and earn ________ profits
A) higher; less; less B) lower; more; more C) higher; more; more D) lower; less; less E) higher; less; more
In the U.S., the Federal government runs a chronic budget deficit, whereas many state and local governments do not, because:
A. Many state and local governments have balanced-budget laws that make deficits illegal, while the Federal government does not B. Voters in Federal elections tend to favor budget deficits, while voters in state and local elections do not C. Many state and local governments face stricter accounting standards than the Federal government does D. Elections at the state and local levels tend to occur more frequently than at the Federal level
Present value determination is a procedure that
a. accounts for the opportunity cost of money b. adjusts for changes in the general price level c. discounts a present value into its future value d. compares the present value of benefits to the present value of costs