The other-things-constant assumption
a. allows the economist to make useful predictions
b. is a prediction
c. applies only to consumers' decisions, not to those of firms
d. forces the economist to ignore reality, where things are constantly changing
e. implies rational self-interest on the part of all economic actors
A
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Refer to Table 11.1. If exports increase by 20 (X = 100), what is the new equilibrium level of output?
A) 1,825 B) 2,425 C) 7,300 D) 9,700
The Federal Reserve helped J. P. Morgan purchase Bear Stearns by agreeing to purchase some unwanted Bear Stearns’ assets.
Answer the following statement true (T) or false (F)
The sum of all past federal deficits minus any surpluses is called the
A) transfer balance. B) national deficit. C) national debt. D) national budget.
The more bowed out the Lorenz curve, the
A. more equal the income distribution. B. less the overall wealth in the economy. C. less equal the income distribution. D. greater the overall wealth in the economy.