"The distribution of income should be determined by the government" is an example of a positive economic statement
Indicate whether the statement is true or false
FALSE
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________ examines whether one variable affects another by using data to build a model that explains the channels through which this variable affects the other
A) Indirect-model evidence B) Organizational-model evidence C) Reduced-form evidence D) Structural-model evidence
If net exports are reduced, the expenditure schedule will shift
a. downward and equilibrium real GDP will rise. b. upward and equilibrium real GDP will rise. c. downward and equilibrium real GDP will fall. d. upward and equilibrium real GDP will fall.
If the demand for a good is relatively elastic, this means that consumer purchases of the good are
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. unaffected by changes in the income level of consumers.
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Designer clothes: consumer confidence in the economy improves.
A. A. B. B. C. C. D. D.