The debate over how governments should respond to deep economic downturns is difficult to resolve with hard empirical evidence because:
A. deep economic downturns are rare events, so there isn't a lot of relevant data.
B. there's so much data that it's difficult to draw meaningful conclusions.
C. few economists are interested studying economic downturns.
D. most economists are only interested in economic theory.
Answer: A
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Explain what economists mean by rational choice and think of three choices that you've made today that are rational
What will be an ideal response?
Which of the following statements is correct?
a. The poverty line is a relative standard. b. More families are pushed above the poverty line as economic growth pushes the entire income distribution upward. c. Increasing income inequality reduces poverty. d. Economic growth, by definition, affects all families equally.
Policy makers should manage aggregate demand so that it grows in line with the economy’s capacity to produce. This task is the realm of
A. growth policy. B. stabilization policy. C. labor policy. D. inflation policy.
Which of the following often involves positive external benefits?
A. water pollution B. drunken driving C. tobacco smoking D. inoculation programs