Suppose that someone makes the argument that because empty alcohol containers are found at many accidents, the containers cause accidents. This would be an example of
a. sound logic.
b. reverse causality.
c. omitted variables.
d. bias.
c
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Answer the following statements true (T) or false (F)
1. Government intervention in the U.S. economy includes legislation such as antitrust laws, labor laws, and safety regulations. 2. Full employment is considered to have been achieved only when everybody in the economy has a job. 3. An economic growth rate of 3 percent would be considered unhealthy for the U.S. economy. 4. A stable unemployment rate requires that the U.S. economy grow each year in order to absorb new workers who enter the labor force.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency rises. b. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. d. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
Determinants of the price elasticity of supply are:
A. availability of inputs, adjustment time. B. flexibility of the production process, whether the good is a luxury or a necessity. C. availability of inputs, whether the good is a luxury or a necessity. D. adjustment time, whether the good is a luxury or a necessity.
Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A) they receive special tax benefits compared to corporations. B) they use different accounting procedures. C) they often fail to consider the opportunity cost of the labor provided by the owner. D) they are not allowed to deduct depreciation expense.