Which of the following statements is true?
A) Marginal analysis is a key tool used while optimizing in levels.
B) Comparative statics is a tool that can be used in both optimization in levels and optimization in differences.
C) Marginal analysis is the comparison of economic outcomes before and after some economic variable is changed.
D) Comparative statics involves calculating the incremental cost of moving from one alternative to the next best alternative.
B
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Economists who believe that the economy is self-regulating are more likely to be nonactivists than activists
Indicate whether the statement is true or false
The evidence shows that, over the last 25 years, spending on research and development in the rich countries has
A) decreased dramatically. B) decreased slightly. C) remained constant. D) increased in absolute numbers, but decreased as a percentage of GDP. E) increased as a percentage of GDP.
To determine whether a nation has an "abundance" of a resource, economists look at:
a. the exports of the nation. b. the imports of the nation. the total quantity of that resource compared with c. the total quantity of the other resource. d. a nation's share of the resource compared with its share of world GDP
If a good is inferior in an economic sense, income elasticity will:
a. be less than one. b. exceed one. c. be zero. d. be inelastic. e. be negative.