Answer the following statements true (T) or false (F)
1) The business cycle is primarily concerned with changes in the level of overall prices over
time.
2) A sometimes short, sometimes extended period of declining output and living standards is
referred to as a recession.
3) The business cycle reflects both short-run fluctuations in output and long-run economic
growth.
4) Economists and policymakers are generally more concerned about nominal GDP than real
GDP.
5) Nominal GDP measures a nation's output in current year prices.
1) F
2) T
3) T
4) F
5) T
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"It is only insofar as some sort of order arises as a result of individual action but without being designed by any individual that a problem is raised which demands a theoretical explanation.". This statement is from:
a. Samuelson b. Friedman c. Stiglitz d. Hayek e. Marx
Here are the costs of going to college: tuition $5,000; books $200; housing $1,000; food $1,000; lost income from work $10,000. Studying and work are equally desirable in your mind. Suppose that you could work part-time and make $5,000 at a job you would volunteer to do. You live on campus instead of at home. What is the cost of going to school?
A. $7,200 B. $11,200 C. $5,200 D. $16,200
When a competitive market achieves allocative efficiency, it is implied that
A. the quantity demanded is lower than the quantity supplied. B. the marginal benefit of having the product is greater than the marginal cost. C. the combined consumer and producer surplus is maximized. D. the buyers are getting the maximum consumer surplus from the product.
Which of the following is an output of production?
A) a haircut B) a U.S. savings bond C) a share of Acme Corporation stock D) None of the above.