Economic models are used to:
A. explain every detail of an economic theory.
B. explore decision making by individuals, firms and other organizations.
C. build physical renditions of government construction projects.
D. represent the complexities of economic environments.
Answer: B
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The largest U.S. economic downturn between 1890 and the present occurred during which of the following events?
a. The Buffalo Head Nickel Panic b. The Rich Man's Panic c. The Great Depression d. The Great Banana Crisis of 1897
Suppose the Fed buys government securities from the public. The liquidity effect of this is that the interest rate will
A) increase. B) decrease. C) remain constant. D) any of the above are possible
Ireland's Balance of Payments (BOP) is an annual statement of:
(a) The international trade position of the Irish Economy; (b) The end of year position of the Irish government's budget; (c) The annual balance sheet view of money inflows and outflows for the Irish economy; (d) None of the above describes the balance of payments.
At what point is the percent of price reduction the same as the percent of quantity increase?
a. ED >1
b. ED = 1
c. ED < 1
d. ED x 1