The process of focusing on only the most important factors to explain a phenomenon is called
A. abstraction.
B. marginal analysis.
C. rational choice.
D. controlled experimentation.
E. the trade-off between efficiency and equality.
Answer: A
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In the above figure, what are the long-run equilibrium price level and real GDP?
A) 130 and $11.5 trillion B) 120 and $11.5 trillion C) 120 and $12 trillion D) 130 and $12 trillion
You and two partners start a company. However, your partners play no role in running the company. You spend all your time managing the business. The time that you could have spent working for someone else and earning wages instead of running the business is your: a. explicit cost
b. marginal cost. c. sunk cost. d. opportunity cost.
During the Vietnam War, the economy plunged into stagflation
Indicate whether the statement is true or false
M1 money includes all the following except
a. traveler's checks b. demand deposits c. savings accounts d. paper money e. coins