After a hurricane, several gas stations decide to keep their gas prices at the prehurricane level. An economist who most likely believes that there has to be some rational reason for this behavior is more than likely a(n):
A. engineering economist.
B. irrational economist.
C. traditional economist.
D. Keynesian economist.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. Contaminants such as pollen and salt spray are known as anthropogenic pollutants. 2. Prior to the 1950s, all air quality laws in the United States had been enacted at the state and local levels of government. 3. The first federal air pollution legislation was the Clean Air Act of 1963. 4. One of the hallmarks of the 1990 Clean Air Act Amendments is its integration of market-based policy instruments, such as the use of tradeable allowances to control emissions. 5. The Clean Air Interstate Rule (CAIR), which was part of the 2004 Clean Air Rules, was considered to be the most important environmental initiative enacted by the Bush Administration.
Technological efficiency, defined in terms of completely objective relationships,
A) has no useful meaning. B) influences the decisions of engineers but not of business executives. C) influences the decisions of engineers but not of economists. D) is more important in the long run than in the short run, where profitability tends to dominate decisions.
The aggregate demand curve tells us equilibrium real GDP at any price level
a. True b. False
Economic growth is an exponential process. What does this mean?
A. It means that the returns to huge capital investments made today will diminish at an increasing rate over time. B. It means that small differences in sustained growth rates have significant effects on a nation's real income over long periods of time. C. It means that countries must allocate increasing amounts of resources to capital goods to see constant increases in the growth rate of potential output. D. It means that if a country allocates a fixed amount of resources to capital goods, its potential output will increase at an increasing rate over long periods of time.