Economists believe the Cost-Benefit Principle is:
A. a comprehensive description of all the factors that influence people's choices.
B. an interesting intellectual exercise with little applicability to the real world.
C. a simple but useful model of how people should make choices.
D. of little use to those who wish to learn how to make better decisions.
Answer: C
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A curve that is derived by summing horizontally individual supply curves is called:
a. aggregate demand. b. aggregate supply. c. market demand. d. market supply.
Most developing countries rely on foreign financing because:
a. ?these countries do not generate enough savings to fund investments. b. ?foreign financing is more reliable than domestic investments. c. ?investors do not recognize their potential gains. d. ?foreign countries are more than willing to invest in developing countries. e. ?their governments are unstable and run on deficits.
Presently, GDP is ________ to compensate for the costs of environmental damage
A) adjusted on a chain-weight basis B) partially adjusted C) not adjusted D) fully adjusted
Non-activists believe that the IS curve is
A) very flat and that real output is sometimes very sensitive to monetary policy in the short run. B) very steep and that real output is sometimes very sensitive to monetary policy in the short run. C) very flat and that real output is not sensitive to monetary policy in the short run. D) very steep.