To provide quantitative answers to policy questions
A) it is typically sufficient to use common sense.
B) you should interview the policy makers involved.
C) you should examine empirical evidence.
D) is typically impossible since policy questions are not quantifiable.
Answer: C
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Which of the following statements is TRUE about the difference between a public and private good?
A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared. B) The government produces private goods while corporations produce public goods. C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others. D) Resources are used to produce private goods but are not used to produce public goods.
Which of the following would lead to a decrease in the supply of watches?
a. An increase in the price of watches b. A decrease in the price of watches c. A decrease in the expected future price of watches d. None of the above
When money demand decreases, the Fed can choose between:
a. increasing interest rates or increasing the supply of money. b. increasing interest rates or decreasing the supply of money. c. decreasing interest rates or increasing the supply of money. d. decreasing interest rates or decreasing the supply of money.
If international trade is based on product differentiation, for a country the basis for
A. importing is that the price of the imports is the same as the price of the domestic products. B. exporting is the domestic production of unique models or varieties demanded by some consumers in foreign markets. C. exporting is that domestic producers can charge a much higher price in the international market. D. importing is that foreign firms usually enjoy external scale economies.