How do ceteris paribus and hypothesis relate in the field of economics?
a. Economists use ceteris paribus to declare that a hypothesis is not constant enough to be a theory.
b. Economists use ceteris paribus to declare that a hypothesis has been accepted as a theory.
c. Economists use ceteris paribus to test a hypothesis only if the two variables are intangible.
d. Economists use ceteris paribus to test a hypothesis with two variables while keeping other variables constant.
d. Economists use ceteris paribus to test a hypothesis with two variables while keeping other variables constant.
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Suppose that in Canada the government places a $1,500 tax on the buyers of new snowmobiles. After the purchase of a new snowmobile, a buyer must pay the government $1,500. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift both the demand and supply curves to the right by $1,500. B) The tax will shift the demand curve to the left by $1,500. C) The tax will shift the supply curve to the left by $1,500. D) The tax will shift the demand curve to the right by $1,500.
Which of the following can best be characterized as a "Black Swan" event?
A) decline in stock prices due to a recession B) rising market interest rates as the Fed tightens monetary policy C) a financial crisis causing credit to dry up D) an individual firm unexpectedly filing for bankruptcy
Capital goods are typically purchased to ________. They get included in GDP ________
A) replace raw materials; in the year they are produced B) enable the investor to produce other goods and services; in each year they are utilized C) enable the investor to consume less in the current period; as they are used up in the stages of production D) enable the investor to produce other goods and services; in the year they are produced E) none of the above
A profit center
a. Is very complicated to run and manage b. Doesn't require a lot of attention from executives at the firm's headquarters c. Requires the parent company's highest degree of attention d. Does not properly incentivize the managers when it comes to their own division's performance