Creative destruction refers to
A. the destruction of the government system which limits economic growth.
B. the movement from an agricultural society to a service economy.
C. the creation of new jobs and economic growth after destroying old jobs.
D. the mechanism for establishing property rights.
Answer: C
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Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:
A) simple regression analysis. B) correlation analysis C) multiple regression analysis. D) cluster analysis.
If a nation has a comparative disadvantage in the production of some commodity, a. it can gain from international trade in that commodity only if it has an absolute advantage in that commodity. b. it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if they produced it domestically. c. it cannot gain from international trade in the
commodity. d. it cannot gain from international trade unless it has an absolute advantage in every other commodity.
Economists who are skeptical about the relevance of "liquidity traps" argue that
a. a central bank continues to have tools to stimulate the economy, even after its interest rate target hits its lower bound of zero. b. a central bank continues to have the option of committing itself to future monetary contraction, even after its interest rate target hits its lower bound of zero. c. a central bank can greatly reduce the likelihood of a liquidity trap by setting the target rate of inflation at zero. d. while the concept of a liquidity trap is theoretically possible, nothing resembling a liquidity trap ever has been observed in the real world.
To remain in consumer optimum
A) a price increase requires an increase in consumption. B) a price decrease requires an increase in consumption. C) a price decrease requires a decrease in consumption. D) prices must remain static.