Which of the following statements is the best example of the term ceteris paribus?
A) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues.
B) More money should be spent on cleaning up the environment.
C) The government budget surplus was $200 billion in 2000 because the economy was growing.
D) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses.
E) When studying the effects of a budget deficit, an economist must take account of all the factors involved.
A
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Compared to the United States, minimum wages are ________ and unemployment benefits ________ in Western Europe.
A. lower; less generous B. higher; less generous C. higher; more generous D. lower; more generous
What is meant by the term "optimization"? What do economists usually believe about how individuals optimize?
What will be an ideal response?
Changes in all of the following shift the LM curve except
a. the price level. b. income. c. the money supply. d. money demand. e. all of the above shift LM curve.
The value added by a firm is defined as: a. the sum of all income earned by the workers in the firm
b. the firm's actual investment minus planned investment. c. the value of the product manufactured by the firm plus the transaction costs incurred by the firm. d. the value of the firm's product minus the cost of materials it bought from other firms. e. the increase in the value of the firm's stock or bond.