Are forecasts of economic activity accurate enough to permit “fine-tuning” of the economy?
A. No, forecasting is so inaccurate that it should be abandoned.
B. No, forecasts are not accurate enough for this.
C. Yes, forecasts are accurate and reliable enough for this.
D. Yes, at least most of the time.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
Bundling
A) is when firms sell multiple separate goods together for a single price. B) is where a firm wraps its fragile goods in special packaging and charges a higher price than if the goods are put into regular packaging. C) increases transaction costs for consumers. D) is illegal in most U.S. states.
A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be:
A. Cutting debt relief for DVCs B. Directing foreign aid to the more affluent DVCs C. Restricting immigration of low-skilled workers from DVCs D. Reducing tariffs and import quotas on labor-intensive products
Empirically measuring the marginal social benefit of pollution is ________ and empirically measuring the marginal social cost of pollution is ________.
A. difficult; relatively easy B. relatively easy; difficult C. difficult; difficult D. relatively easy; relatively easy