In forecasting consumer spending using surveys of consumer confidence, research suggests that
A. the forecasts are not improved when using consumer confidence measures.
B. the forecasts are improved when using consumer confidence measures for forecasts made during recessions, but not expansions.
C. the forecasts are not improved when using consumer confidence measures for forecasts made during expansions, but not recessions.
D. the forecasts are improved when using consumer confidence measures.
Answer: A
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When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods
A) must increase. B) must decrease. C) must remain the same. D) must change but they might increase or decrease. E) might increase if the nation can produce more efficiently.
What issue is there regarding housing and the measurement of GDP?
A) residential investment is measured using current house prices, not construction prices. B) houses are a capital and a consumption good. C) one does not know whether a house will be owned or rented when it is built. D) mobile homes are not counted.
In a competitive market economy, a resource in short supply will be allocated
A. so that each firm gets enough to keep producing some portion of its output. B. according to how much each firm purchased before the shortage. C. to those firms that can make the most profitable use of it. D. by government fiat.
Which of the following is NOT an advantage associated with Eurocurrencies?
A) more convenience for users B) better yield for lenders C) tighter U.S. regulation D) cheaper lending rates