Economic models are most useful in
A) predicting changes in one variable due to a change in one or more other variables.
B) predicting the direction of the stock market.
C) explaining the future with the past.
D) generating untestable hypotheses.
A
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If the price of potato chips increases, other things constant, demand for potato-chip dip will:
a. not change; only quantity demanded will change. b. increase, because the goods are substitutes. c. decrease, because the goods are substitutes. d. decrease, because the goods are complements. e. increase, because the goods are complements.
Which of the following is true?
a. In recent decades, the volume of U.S. international trade has been declining as a share of the economy. b. Most of the textile products produced in the United States are exported abroad. c. The volume of U.S. trade with Canada is larger than for any other country. d. If one party to an international exchange gains, the other party must lose a similar amount.
The distribution of income primarily determines which of the fundamental economic questions?
A) What goods and services are to be produced? B) How the goods and services are to be produced? C) Who will receive the goods and services produced? D) How will the economy be planned?
If Microsoft merges with retail stores and computer makers, such that competition is substantially reduced, it would be in violation of the:
a. Clayton Act. b. Robinson-Patman Act. c. Sherman Antitrust Act. d. Federal Trade Commission Act. e. Celler-Kefauver Act.