Answer the following statements true (T) or false (F)
1. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants.
2. Economics can be defined as the study of choices.
3. The United States has an abundance of resources and thus does not face the problem of scarcity.
4. The standard of living in most countries in the past has risen primarily as a result of a more skilled workforce and better machinery and equipment.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
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The order of integration
A) can never be zero. B) is the number of times that the series needs to be differenced for it to be stationary. C) is the value of ?1 in the quasi difference(?Yt - ?1Yt-1). D) depends on the number of lags in the VAR specification.
The government often enacts regulation that benefits producers because
a. the government seeks to regulate in the best interest of the public b. consumers have less information than producers and therefore seek government protection c. consumers have a strong interest in matters that affect their standard of living d. producers have a strong interest in matters that affect their specialized source of income e. producers seek to act in the best interest of the public
A vocal minority of economists, believers in the theory of rational expectations, insist that
a. the Phillips curve is downward sloping even in the short run. b. the Phillips curve is vertical even in the short run. c. a trade-off exists between inflation and unemployment even in the long run. d. expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
Refer to the accompanying figure.
This firm's marginal revenue curve would intersect the vertical axis at ________.
A. $20 B. $0 C. $35 D. $70