When economists use the term "correlation," they are referring to
A) normative economics.
B) positive economics.
C) cause and effect relationships between variables.
D) economic policy.
E) how two variables move together in a predictable way.
E
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During periods of unemployment
A) the economy operates at a point inside the production possibilities curve. B) the economy operates at a point outside the production possibilities curve. C) the production possibilities curve shifts inward. D) the production possibilities curve shifts outward.
A natural monopoly occurs when
a. patents protect a firm from competition b. copyrights protect a firm from competition c. advertising costs exceed fixed costs d. marginal cost exceeds marginal revenue e. average costs decrease over the whole range of market output
If the LM curve shifts down, this would be consistent with:
A) a rise in the money supply. B) a fall in interest rates. C) a rise in interest rates. D) both a rise in the money supply and a fall in interest rates.
According to your text, open market operations
A) can be a difficult and delicate task. B) are free from political pressures. C) are designed solely in the national interest. D) have failed to be effective ever since the U.S. has gone off the gold standard.