When economists say an activity is consistent with economic efficiency, they mean
a. a majority of citizens favor the activity.
b. the benefits that result from the activity exceed the costs.
c. the number of people who gain from the activity exceeds the number on whom costs are imposed.
d. the costs that result from the activity exceed the benefits.
B
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The scientific method refers to the process by which economists and other scientists:
A) plot graphs to illustrate relationships between different economic variables. B) develop models of the world and test those models with data. C) develop models to explain the past but not to predict the future. D) collect data for further use in research.
Genovia produced 10 million tonnes of wheat in a particular year. However, 1 million tonnes got infested with pests and had to be thrown away. How will this affect the calculation of the gross domestic product of the country for that year?
What will be an ideal response?
Which of the following variables that affect the money stock are outside the direct control of the Federal Reserve?
a. Currency/deposit ratio b. Excess reserve/deposit ratio c. Required reserve/deposit ratio d. The speed of the money creation process. e. Both a and b
The automobile, breakfast cereal, and tobacco industries are examples of
a. monopolistic competition b. oligopoly c. perfect competition d. monopoly e. monopsony