The classical dichotomy states that
A) money is superneutral.
B) goods markets are separated from labor markets.
C) demand is separate from supply.
D) real markets determine nominal outcomes, not the reverse.
D
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To an economist, theory can be thought of as
a. abstraction for the sake of argument. b. one person's opinion, which is just as good as another's. c. another term for the description of a situation. d. beliefs which cannot necessarily be verified. e. explanation of mechanisms behind observed phenomena.
Which of the following is most likely to be predicted by the Heckscher-Ohlin theory?
A. The wage rate of the low-skilled workers will be higher in the developing countries than in the developed countries. B. The industrialized nations will mainly export labor-intensive goods. C. Countries like China will completely specialize in the production of primary products. D. The developing countries will mainly export labor-intensive goods.
Which legal claim has a fixed annual coupon payment?
A. common stock B. preferred stock C. bond D. reinvestment
The realization that only a small portion of criminals commit the majority of crimes suggests that, as you devote resources to the criminal justice system, the
A. marginal benefit quickly decreases. B. marginal cost sharply decreases. C. total cost always decreases. D. total benefit quickly decreases.