Economic theories are
a. useful because they are as exact as theories in the physical sciences
b. useless because they are based on abstractions
c. useful because they allow us to make predictions
d. too complex to understand because they include all of reality
e. useful in predicting events only if their assumptions are realistic
C
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Which is the first stage of Maslow's Hierarchy of Needs?
a. self-actualization b. esteem needs c. safety d. physical needs
Changes in relative prices may occur
A. Only in periods of stable prices. B. In periods of stable prices or in periods of inflation or deflation. C. Only in periods of inflation or deflation. D. In none of the other choices.
If potential GDP is $400 billion and there is a negative GDP gap of $15 billion, real GDP is:
A. $415 billion. B. $385 billion. C. $15 billion. D. $785 billion.
Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's total revenue is
A. $2,000. B. $44,000. C. $60,000. D. $100,000.