The economy experiences a decrease in the price level and an increase in real domestic output. Which is a likely explanation?
A. Consumer incomes and the quantity of labor have decreased
B. Business costs and wage rates have decreased
C. The prices of imported resources have increased
D. National income abroad has increased
B. Business costs and wage rates have decreased
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The national debt is the total amount the ________ government has borrowed to make expenditures that ________ tax revenue
A) federal; exceed B) state and local; exceed C) state and local; are less than D) federal; are equal to E) federal; are less than
The use of data in economic models is important because
A) the model's predictive value rests on supportive evidence from real-world data. B) the models are always complex in nature. C) models must analyze every possible angle of the problem. D) social problems analyzed by economists require long streams of data.
The Navigation Acts:
a. required certain commodities to be traded within the British empire only. b. provided for the free trade of colonial goods, including tobacco, indigo and sugar. c. required all colonial trade to be carried on English vessels. d. were abolished in 1700. e. both a and c are correct.
Related to the Economics in Practice on p. 36: In all societies, resources are limited relative to people's demands, and there are ________ trade-offs individuals face in rich countries versus poor countries.
A. more important B. large differences in the kinds of C. fewer D. virtually no differences in the types of