A characteristic of a good model is that
A. it predicts perfectly.
B. it applies to all situations.
C. it is useful for making irrefutable predictions.
D. its predictions can be tested using real-world data.
Answer: D
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Of the following, which group is hurt by a tariff?
A) domestic consumers of the good B) domestic government C) foreign government D) foreign consumers of the good E) domestic producers of the good
Inflation was a problem during the Great Depression
Indicate whether the statement is true or false
An advantage to exchange-rate targeting is it helps keep inflation under control by tying the inflation rate for ________ traded goods to what is found in the ________ country
A) domestically; anchor B) domestically, domestic C) internationally; anchor D) internationally; domestic
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower output. C. lower prices. D. None of these is true.