A drawback of using market values to aggregate the quantities of goods and services produced in an economy is that:
A. higher-priced items count more.
B. not all economically valuable goods and services are bought and sold in markets.
C. market prices generally reflect the economic benefit consumers expect to receive from an item.
D. GDP increases when not all goods are produced in greater quantities.
Answer: B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Refer to the scenario above. Which of the following statements is true?
A) The discounted value of $3,400 to be received after five years is $3,000. B) Tom's return from investing in his friend's project is higher than the amount received from the bank after five years. C) Tom's return from investing in the bank is higher than the amount received from his friend's project after five years. D) The returns on both investments are likely to be similar and Tom should be indifferent about investing in either options.
A hot dog vendor on a street corner could increase the quantity of hot dogs her customers demand by 12 percent if she lowers the price of a hot dog 10 percent. The demand for the hot dogs is
A) cross elastic. B) arc elastic. C) unit elastic. D) elastic.
Find the degrees of freedom in a regression model that has 10 observations and 7 independent variables.
A. 17 B. 2 C. 3 D. 4