The vicious circle of poverty refers to a condition where
a. people are poor because they cannot invest in capital goods and they cannot invest in capital goods because they are poor
b. people who borrow money at high interest rates can never get out from under the indebtedness created
c. people invest in unprofitable projects and keep pouring loanable funds into those projects in the hope of salvaging them
d. people prefer consumption goods to capital goods so there are insufficient capital goods to propel the economy out of poverty
e. poverty is relative and poor people remain poor because the wealthy grow wealthier
A
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According to the Taylor rule, if actual output is greater than the natural rate of output, then the Fed should
a. decrease inflation. b. increase interest rates. c. conduct open market sales. d. decrease interest rates. e. Both a and b
Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?
A) P5, Q1 B) P3, Q3 C) P2, Q1 D) P1, Q4
The logit model can be estimated and yields consistent estimates if you are using
A) OLS estimation. B) maximum likelihood estimation. C) differences in means between those individuals with a dependent variable equal to one and those with a dependent variable equal to zero. D) the linear probability model.
Quarterly GDP:
A. is always shown as a seasonally adjusted estimate for an annual rate. B. takes account of unpredictable seasonal patterns in order to guess at annual GDP. C. is adjusted for predictable, seasonal variation to predict what GDP would be if the economy continues at its current pace. D. is the only representation of GDP that economists view as credible.