A hypothesis in an economic model is a statement that ________ about an economic variable
A) is correct
B) is incorrect
C) may be either correct or incorrect
D) can not be proven either correct or incorrect
C
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If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing banana splits
Indicate whether the statement is true or false
In order for a country to achieve more consumer goods in the future, it must
A. allocate more resources toward investment today. B. devote more resources toward consumer goods today. C. have a faster economic growth rate in the future. D. devote more resources to consumer goods in the future.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, what is gained by producing at point B rather than point A?
A. 15 Stealth bombers. B. 15 B-1 bombers. C. 195 Stealth bombers. D. 35 B-1 bombers.
Depository institution create liquidity when they
A) buy assets that are liquid. B) borrow short and lend long. C) have liabilities that are illiquid. D) borrow long and lend short.