Economists believe the Cost-Benefit Principle is:
A. a comprehensive description of all the factors that influence people's choices.
B. of little use to those who wish to learn how to make better decisions.
C. an interesting intellectual exercise with little applicability to the real world.
D. a simple but useful model of how people should make choices.
Answer: D
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Forward Guidance refers to:
A. a process similar to open-market purchases B. information that a central bank provides to the financial markets regarding its expected future monetary- policy path C. lending of reserves by the Federal Reserve to commercial banks D. a process similar to open-market sales
The unemployment rate is usually zero except during recessions
a. True b. False
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply rise. b. Aggregate demand and aggregate supply fall. c. Neither aggregate demand nor aggregate supply change. d. Aggregate demand rises, and aggregate supply falls. e. None of the above.
In 2013, the poverty line for single parent families headed by males was:
a. about half the overall poverty rate b. about the same as for families headed by married couples c. about half the rate for single parent families headed by females d. all of the above