It is difficult to empirically test alternative macroeconomic models against one another because
A. macroeconomic models are always expressed in scientific terms.
B. macroeconomic models cannot be expressed in mathematical terms.
C. macroeconomic models do not predict the same outcomes from policies.
D. macroeconomic models differ in ways that are hard to standardize for.
Answer: D
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Most Americans
A. have accurate perceptions of the level of corporate profits. B. underestimate corporate profits. C. overestimate corporate profits. D. believe that corporations earn zero profit.
Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0
40 per car at all other times. The weekly demand for using the tollway during rush hour is Q1 = 800 - 200P1 where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Q2 = 2000 - 1000P2. Gotham City's marginal cost of operating the tollway is MC = 0.02 + 0.001Q per car. a. What are the marginal revenue curves associated with the two demand curves? b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway?
At a market clearing price
A) the quantity demanded will just equal the quantity supplied. B) there will be an excess quantity demanded. C) there will be a tendency for price to rise over time. D) the demand function will shift outward.
The Federal Drug Administration slows the pace at which helpful medications reach the marketplace. The alternative of having the medication available to consumers earlier is an example of:
A. the opportunity cost of the Federal Drug Administration's regulation. B. how easy it is to identify and evaluate sunk costs. C. the marginal benefit of the Federal Drug Administration’s regulation. D. promoting consumer health in the population.