The answer is: "After a policy measure is implemented, it takes time to affect the economy." What is the question?
A) What is the wait-and-see lag?
B) What is the data lag?
C) What is the effectiveness lag?
D) What is the transmission lag?
E) What is the legislative lag?
C
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For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is lower in Denmark. b. The opportunity cost of producing cheese is lower in Denmark. c. The opportunity cost of producing watches is identical in both countries. d. It is impossible to compare opportunity costs because the two countries use different currencies. e. In Germany the opportunity cost of producing one pound of cheese is one watch.
Which of the following statements is correct?
a. The total income in the economy that remains after paying for consumption and government purchases is called private saving. b. The sum of private saving and national saving is called public saving. c. For a closed economy, the sum of private saving and public saving must equal investment. d. For a closed economy, the sum of consumption, national saving, and taxes must equal GDP.
Today the primary distinction between direct and indirect finance is in:
A. direct finance the asset holder has a claim on a financial institution while in indirect finance the asset holder has a direct claim on the borrower. B. indirect finance the asset holder has a claim on the government while in direct finance the asset holder has a direct claim on a private sector corporation. C. indirect finance the lender has a direct claim on the borrower while in direct finance the lender has a claim on a financial institution. D. direct finance the asset holder has a direct claim on the borrower while in indirect finance the asset holder has a claim on a financial institution.
"Everybody has a comparative advantage in something." Do you agree or disagree? Why?
What will be an ideal response?