An economic theory is also known as an economic
A) model.
B) prediction.
C) conclusion.
D) assumption.
Answer: A
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If exports rise and imports fall, then
a. GDP will increase b. GDP will decrease c. GDP may remain unchanged d. net exports will fall e. transfers will rise
Which of the following is most likely to result in a decline in the economic growth of a nation?
a. The installation of a network of irrigation ditches and pumping stations to grow fruits and vegetables in parts of southern California b. The invention of a threshing machine for harvesting grains c. Increased government funding for higher-secondary education d. Emigration by the citizens of Nomanzia, an island country, when a politically repressive regime took office
If there is a shortage in a free market, then
A. suppliers will decrease their output to match demand. B. consumers will offer to pay a lower price for the good, and the price will fall toward the equilibrium level. C. suppliers will accept any price below equilibrium. D. consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.
Monetary and fiscal policymaking that is carried out in response to a pre-set rule and does NOT respond to changes in economic activity is known as
A. discretionary policymaking. B. nondiscretionary policymaking. C. active policymaking. D. Keynesian policymaking.