Which of the following contributed to the soaring housing prices during 2002-2004?
a. the Fed's high-interest rate policy
b. the tightening of loan standards by commercial lenders
c. the increasing popularity of fixed-rate, long-term loans to lock in low interest rates
d. the Fed's low-interest rate policy
D
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What is the difference between a command economy and a laissez-faire economy?
What will be an ideal response?
Behavioral assumptions
a. make economic models more complex than if these assumptions were removed b. pertain only to consumers c. hold all other things constant d. are ways to test a hypothesis e. describe how individuals are expected to behave
There is an increase in the demand for cookies when the price of coffee falls. Other things constant, we can conclude that cookies and coffee are
A) substitute goods. B) inferior goods. C) independent goods. D) complementary goods.
For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic growth would be changes in:
A. total nominal output. B. total real output. C. per capita output. D. per family output.