A market basket:
A. looks like a really long shopping list for what firm’s typically purchase.
B. includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending.
C. onlyincludes housing, food, and clothing, but not things like transportation.
D. is what an economist creates in order to understand purchasing trends of households and firms.
B. includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending.
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Economic growth is severely impeded in economies
A) with a lack of clear property rights. B) with high rates of convergence. C) which encourage induced innovation. D) with a strong market system.
Producing leather creates external costs in the form of water pollution. The figure above illustrates the market for leather. In the absence of any government regulation, how many tons of leather will be produced?
A) 0 tons B) 200 tons C) 300 tons D) more than 300 tons E) None of the above answers is correct.
President Obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school
This policy would ________ the production of current consumption goods and services and ________ the future production of consumption goods and services. A) decrease; increase B) increase; decrease C) not change; increase D) increase; increase
If the expected path of 1-year interest rates over the next four years is 5 percent, 4 percent, 2 percent, and 1 percent, then the expectations theory predicts that today's interest rate on the four-year bond is
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.