Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
Which graph in Figure 5-3 best represents the aggregate demand-induced Great Depression of the 1930s?
A. 1
B. 2
C. 3
D. 4
Answer: B
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Threats to internal validity of quasi-experiments include
A) failure of randomization. B) failure to follow the treatment protocol. C) attrition. D) all of the above with some modifications from true randomized controlled experiments.
The income elasticity of demand for ________ goods tends to be positive, while demand for ________ goods tends to be negative
a. normal; inferior b. inferior; normal c. necessary; luxury d. luxury; necessary
Which of the following is illegal according to the antitrust laws?
A) output restrictions B) price discrimination based on cost differences C) vertical mergers D) price fixing
Answer the following statements true (T) or false (F)
1. A positive economic statement is always true. 2. Positive economics deals with “what is” as opposed to “what ought to be.” 3. The largest part of U.S. national income takes the form of profits. 4. Consumption is the ultimate end of economic activity.