Why do economists disagree on so many economic policy questions?
What will be an ideal response?
In some situations, economists do not have enough data to be certain of the right answer. In other situations, the disagreements are aggravated by the political agendas of parties who stand to gain or lose by changes in the government's economic policy.
You might also like to view...
Table 11-1 Y = C + I + G C = 500 + 0.8(Y?T) I = 300 G = 700 T = 0.25Y Refer to Table 11-1. What is the level of consumption in this model?
A. 2,950 B. 2,750 C. 2,550 D. 2,350 E. 2,150
Compared to the demand for coffee, the market demand for French Roast coffee is likely to be
A. more elastic. B. more inelastic. C. perfectly elastic. D. perfectly inelastic.
President George W. Bush used part of the budget surplus inherited from the Clinton administration to:
A. fund tax cuts. B. stimulate the economy that was slowing down following the end of the high-tech investment boom. C. increase government entitlement spending. D. both fund tax cuts and stimulate the economy that was slowing down following the end of the high-tech investment boom.
When MC is falling, ATC and AVC
A. must be rising. B. must be falling. C. may be falling or rising. D. will remain constant.