Economics employs a scientific methodology. In part, this means that
a. all economic laws have been proven true by laboratory tests
b. there is a single economic theory accepted by all economists
c. economic hypotheses are tested to determine their validity
d. personal values never enter into economic policy recommendations
e. assumptions are not necessary in economic science
C
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Paper currency that could be redeemed for a specific quantity of an underlying commodity is called
A) commodity money. B) fiat money. C) representative commodity money. D) Federal Reserve cash.
Society might argue that there are cases in which it is appropriate to resist price increases in situations where scarcity is serious. Included would be the case of
a. unrestrained monopoly that would otherwise succeed in gouging the public. b. taxes imposed on products capriciously and inappropriately. c. rising prices falling so heavily on the poor that rationing becomes preferable. d. All of the above are correct.
Which of the following integration types aims at reducing transaction costs?
A. Cointegration B. Vertical integration C. Conglomerate integration D. Horizontal integration
What happens if the price of a product is below the equilibrium price?
A. The buyers will stop purchasing a "cheap" product. B. The producer will lower the price to sell more product. C. There will be an excess demand for the product. D. There will be a surplus of the product.