To help unscramble cause and effect, economists
A) use the concept of opportunity costs.
B) must use the ceteris paribus assumption.
C) answer the "what" question.
D) answer the "how" question.
E) must use normative statements.
B
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If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000, the savings rate in the economy must be:
A) 40%. B) 44%. C) 30%. D) 20%.
How does inflation act as a tax?
What will be an ideal response?
For productive efficiency to hold
A) average variable cost is minimized in production. B) average total cost is minimized in production. C) price must equal the marginal cost of the last unit produced. D) price must equal marginal revenue of the last unit sold.
As a large number of students graduate from college, which category of unemployment would increase?
a. Seasonal unemployment b. Structural unemployment c. Frictional unemployment d. Cyclical unemployment e. They will have no effect on unemployment