The ratio at which a country can trade its exports for imports from other countries is called comparative advantage
Indicate whether the statement is true or false
FALSE
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When changes in taxes and government purchases occur in the economy without explicit action by Congress, such changes are referred to as
A. discretionary fiscal policy. B. automatic stabilizers. C. cyclical stabilization. D. implicit stabilization.
Over the years, economists in universities and government agencies have developed a number of fairly accurate techniques to assist them in predicting what the economy will do
a. True b. False Indicate whether the statement is true or false
If men, on average, earn 20 percent more than women in a particular occupation,
a. this is clear evidence of discrimination. b. some of this differential could be due to differences in educational levels. c. some of this differential could be due to differences in human capital. d. Both b and c are correct.
Joseph Gallo poured two glasses of wine from the same bottle but put a more expensive price tag on one glass than on the other. He let people test both and asked which they wanted; most wanted the more expensive glass, not knowing that both had come from the same bottle. This kind of experiment tells us that:
A. people probably want to drink wine for the sense of indulgence it gives them rather than for the taste. B. preferences are given and are not shaped by society. C. people never make rational choices. D. decision making is costless.