"A tax cut will lead to higher inflation" is an example of a positive economic statement
a. True
b. False
Indicate whether the statement is true or false
True
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Why does the opportunity cost of your college education include money you could have earned working instead of going to college?
A. Because most people who don't go to college work instead. B. Because the best alternative use of your time is working. C. Because people should be productive members of society. D. Because working a full time job takes as much time as going to college.
Sometimes, we observe cases where the price of a product rose and the quantity bought by buyers also increased. Such cases occur due to a violation of the
What will be an ideal response?
The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the: a. volatility of investment spending
b. existence of long-term contracts. c. complete information possessed by workers. d. all of the above.
One reason the housing bubble occurred is because:
A. the recency effect caused homes to typically be undervalued. B. the herd instinct caused everyone to believe home prices would continue to fall. C. securitization removed much of the risk from the sellers of subprime mortgages. D. All of these statements are true.