An outcome is socially optimal if it:
A. maximizes total economic surplus.
B. leaves no unexploited opportunities for individuals.
C. is an equilibrium outcome.
D. it is determined by the government.
Answer: A
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Which of the following indicators will always improve when more variables are added to a regression equation?
A) the magnitudes of the coefficients B) the t-test C) R2 D) the standard errors of the coefficients
Policymakers can neutralize:
A. only demand shocks. B. supply shocks in both the short run and the long run. C. supply shocks, but only in the long run. D. supply shocks, but only in the short run.
Figure 6-5
If the demand curve in Figure 6-5 is unit elastic, then total expenditure at A is ____ total expenditure at B.
A. greater than B. less than C. equal to D. less elastic than
Which of the following remains constant along the short-run Phillips curve?
A. Output B. Inflation C. Inflationary expectations D. Unemployment