Eric brews beer for a hobby. He has noticed that whenever he brews an unusually bad batch of beer, his next batch is much better. One explanation for this is that Eric learns from his past mistakes. Another explanation is:
A. regression to the mean.
B. loss aversion.
C. status quo bias.
D. the representative heuristic.
Answer: A
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In Figure 4-5 above, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is ________ to support commodity market equilibrium, so that involuntary inventory changes are ________
A) too low, positive B) too low, negative C) just right, zero D) too high, positive E) too high, negative
Between 1955 and 2006, the federal government purchases of goods and services as a percentage of GDP has:
a. generally trended downward b. Not changed. c. Grown by about 10%. d. Tripled.
Refer to the diagram, which applies to a private closed economy. The APC is equal to 1 at income level:
A. J.
B. M.
C. H.
D. G.
Labor unions in the United States today
A. look to protect the interests of the employers of labor. B. are as influential as they were in the 1950s. C. are much more popular among immigrant workers than among native workers. D. tend to be less influential compared to labor unions in other developed countries. E. cover the same percent of workers as they did in years past.