When modern economists cannot solve a model analytically, they can estimate the solution by:
A. using induction to solve a series of equations.
B. abandoning models altogether.
C. changing from the inductive back to the deductive approach.
D. simulating the model with a computer to arrive at a numerical solution.
Answer: D
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The aggregate demand curve indicates the relationship between:
a. the real wage rate and the quality of resources demanded by producers of goods and services. b. the interest rate and the amount of loanable funds demanded by borrowers. c. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. d. the general price level and the aggregate quantity of goods and services demanded.
In the U.S., the share of taxes ____ during the early years of George W. Bush's presidency and ____ since then
a. decreased; increased somewhat b. decreased; further decreased c. increased; further increased d. increased; decreased somewhat e. increased; remained constant
Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is doubled, the
a. base of the triangle that represents the deadweight loss doubles. b. height of the triangle that represents the deadweight loss doubles. c. deadweight loss of the tax quadruples. d. All of the above are correct.
Diminishing marginal product occurs when
a. the increases to total output are declining. b. marginal product is negative. c. total output is decreasing. d. All of the above are correct.