Which of the following is a characteristic of pure capitalism?
a. all resources are owned communally
b. economic activity is coordinated by government decision makers
c. the price system is used to guide resources to their highest-valued uses
d. centralized economic planning is used to answer the basic economic questions
e. individual choices are reflected only through collective decisions
C
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Lily has $10 to spend each week on fish and chicken. Fish costs $2 a serving and chicken costs $3 a serving. The table shows Lily's marginal utilities of fish and chicken. Lily will consume ________ servings of chicken and ________ of fish each week
A) 4; 0 B) 1; 3 C) 0; 5 D) 2; 2
HAC standard errors and clustered standard errors are related as follows:
A) they are the same B) clustered standard errors are one type of HAC standard error C) they are the same if the data is differenced D) clustered standard errors are the square root of HAC standard errors
An opportunity cost is:
a. the value obtained when making a choice. b. the price paid for the choice that is made. c. what must be given up to obtain something that is desired. d. what must be given up to obtain something that is not desired.
If the Fed decides to tighten monetary policy because the inflation rate has risen to a level inconsistent with economic efficiency and long-term growth:
A. in the short run the AD curve shifts to the left and a recessionary gap is created. B. in the short run the AD curve shifts to the right and a recessionary gap is created. C. in the short run the SRAS curve will shift downward and a recessionary gap is created. D. in the long run the AD curve will shift to the left and the long-run equilibrium is restored.