Which of the following is a limitation of using arithmetic averages to calculate growth rates?
A) Arithmetic averages do not capture the exponential nature of growth and thus are not apt for long-run prediction.
B) Arithmetic averages cannot be used in case of negative growth.
C) Arithmetic averages are difficult to calculate.
D) The calculation of growth using arithmetic averages requires more data than other methods.
A
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In a game of bargaining, those who ________ will likely get the highest payoff.
A. are patient B. are cooperative C. collude D. have a commitment strategy
Within the Keynesian aggregate expenditure-output model, if an economy operates below full employment:
a. a reduction in wage rates and resource prices will soon restore full-employment equilibrium. b. a reduction in the real interest rate will soon restore full-employment equilibrium. c. an increase in the real interest rate will soon restore full-employment equilibrium. d. the economy may remain below full employment unless aggregate expenditures increase.
If the marginal cost of flying the next flight is zero and one passenger is on the plane and has paid $50,
A) fixed cost would still be covered. B) the passenger should be given a bus ticket. C) losses would get bigger. D) the next flight should be flown.
If the percentage of income paid in taxes increases as income rises, then the tax system is
A. Progressive. B. Regressive. C. Nominal. D. Marginal.