Comparing a set of feasible alternatives and picking the best one is an optimization process called _________.
A. statistical inference
B. likelihood estimation
C. cost-benefit analysis.
D. normative analysis.
C. cost-benefit analysis.
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Briefly define real and potential GDP, and explain the relationship between real GDP and potential GDP. How can we measure potential GDP?
What will be an ideal response?
A good or service or a resource is excludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from enjoying its benefits. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy:
a. is producing at its potential GDP. b. is producing at a point where output is more than potential GDP. c. is producing at a point where output is less than potential GDP. d. is producing at its equilibrium point.
Bank panics were the result of
A. banks holding 100% of their deposits on reserve. B. depositors attempting to withdraw more deposits than the banks held in reserve. C. banks hoarding greenbacks during the Civil War. D. the United States going off the gold standard in 1933.