One reason why economists often appear to disagree when asked about the impact of some bad economic news is that
a. they do not understand the economy very well
b. economics is a very difficult science, and so there are many incorrect economic projections being made
c. economists rarely disagree; people just think they are disagreeing because they do not understand the language of economics
d. economists often appear to be disagreeing when one is talking about long-run impact while the other is referring to short-run impacts
e. economists are by nature competitive individuals and they often disagree
D
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In the above figure, the market is at its equilibrium. Area A + area B is equal to
A) consumer surplus. B) total revenue. C) total surplus. D) marginal benefit. E) producer surplus.
The "new product bias" in the consumer price index refers to the idea that
A) consumers switch to old goods when the prices of new goods increase, and the CPI underestimates the cost to consumers. B) consumers switch to new goods when the prices of old goods increase, and the CPI overestimates the cost to consumers. C) new products' prices often decrease after their initial introduction, and the CPI is adjusted infrequently and overestimates the cost to consumers. D) consumers prefer new goods, even if they are worse in quality than old goods, and this causes the CPI to underestimate the cost to consumers.
Based on Figure 3.1, it can be inferred that:
A) Alvin does not consider good X as "good." B) Alvin will never purchase any of good Y. C) Alvin regards good X and good Y as perfect substitutes. D) Alvin regards good X and good Y as perfect complements. E) none of the above
Our balance on current account
A. has recently turned negative. B. has been negative for years. C. has recently turned positive. D. has been positive for years.