"Prices rise when the quantity of money rises rapidly" is an example of a
a. negative economic statement.
b. positive economic statement.
c. normative economic statement.
d. statement that contradicts one of the basic principles of economics.
b
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Countries without well-developed financial systems are able to sustain high levels of economic growth
Indicate whether the statement is true or false
Which of the following statements applies to economics, as well as to other sciences such as physics?
a. Experiments are considered valid only when they are conducted in a laboratory. b. Good theories do not need to be tested. c. Real-world observations often lead to theories. d. Economics, as well as other sciences, is concerned primarily with abstract concepts.
In a country that has a population of 4 million people, the participation rate is 70% and the unemployment rate is 12%. The number of persons unemployed is:
(a) 2.8 million. (b) 1.8 million. (c) 236,000. (d) 336,000.
Which of the following is not correct?
a. The model of aggregate demand and aggregate supply is used by most economists to analyze short-run fluctuations. b. During a recession firms cut back production and workers are laid off. c. A recession is a period of declining real incomes and declining unemployment. d. A depression is a severe recession.