Suppose that a study is released stating that as people increase the number of times they brush their teeth each day, they increase the number of times they go to the gym each week. This is best described as an example of
A. positive correlation.
B. negative correlation.
C. positive causation.
D. negative causation.
Answer: A
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OPEC was able to function as an extremely successful cartel in the last half of the 1970s because
A) it was an association of governments rather than of private individuals. B) it was able to separate OPEC oil from non-OPEC oil and to engage in price discrimination. C) the increasing scarcity of oil produced an upward-sloping marginal revenue curve. D) the widespread expectation of much higher future prices discouraged current production. E) wars in the Middle East raised the marginal cost of producing oil.
The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Under the Bretton Woods exchange rate system, ________ could sell their dollars to the American government in exchange for gold
A) American citizens B) foreign central banks C) foreign citizens D) all of the above
Which of the following is a reason that the Fed does not traditionally attempt to limit asset price bubbles?
a. The Fed's actions could do more harm than good. b. It is nearly impossible to determine if a bubble exists before it bursts. c. The Fed's policies cannot be targeted at only one sector of the economy. d. all of the above