Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:
a. confused association and causation.
b. misunderstood the Ceteris paribus assumption.
c. used normative economics to answer a positive question.
d. built an untestable model.
a
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There is general agreement among economists that rent controls cause shortages of housing, but despite this rent controls continue to persist. Why does this occur?
A. Many people do not understand the effects that controls cause. B. Property owners are politically unpopular. C. Many persons tend to benefit from rent controls. D. All of these responses are correct.
Refer to the above figure. A perfectly competitive firm that is in long-run equilibrium will be operating
A) with positive economic profits. B) at a quantity greater than point E. C) at a quantity less than point E. D) at point E.
The opportunity cost of holding money is measured by the rate of interest
a. True b. False Indicate whether the statement is true or false
What is the distinction between foreign direct investment and foreign portfolio investment?